The Cheesecake Factory (CAKE)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	300,798	272,376	299,171	313,636	345,768	317,738	391,679	367,321	405,589	310,187	328,264	343,815	341,359	411,019	454,605	270,658	244,515	449,141	158,192	157,516
Total current liabilities	US$ in thousands	660,671	618,520	623,452	626,695	656,678	606,168	623,504	594,436	636,273	557,108	597,152	557,957	586,067	540,377	532,672	507,126	614,587	433,786	436,963	446,636
Current ratio		0.46	0.44	0.48	0.50	0.53	0.52	0.63	0.62	0.64	0.56	0.55	0.62	0.58	0.76	0.85	0.53	0.40	1.04	0.36	0.35

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $300,798K ÷ $660,671K
= 0.46

The current ratio of The Cheesecake Factory has fluctuated over the past few quarters, ranging from 0.35 to 1.04. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone.

It is noteworthy that the current ratio has generally been on the lower side, indicating that the company may have a relatively lower level of current assets compared to its current liabilities. This suggests that there may be liquidity constraints for the company in the short term.

While the current ratio improved in some quarters, reaching its highest point at 1.04 in the fourth quarter of 2019, it has generally been below 1, which could be a cause for concern for creditors and investors. It may be important for the company to closely monitor its liquidity position and assess ways to improve its current ratio to ensure it can meet its short-term financial obligations.