The Cheesecake Factory (CAKE)

Current ratio

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Total current assets	US$ in thousands	333,313	333,313	286,538	286,538	277,935	277,935	283,572	283,572	300,798	300,798	63,987	272,376	91,557	299,171	313,636	313,636	345,768	345,768	317,738	317,738
Total current liabilities	US$ in thousands	711,420	711,420	651,893	651,893	642,607	642,607	654,501	654,501	660,671	660,671	618,520	618,520	623,452	623,452	626,695	626,695	656,678	656,678	606,168	606,168
Current ratio		0.47	0.47	0.44	0.44	0.43	0.43	0.43	0.43	0.46	0.46	0.10	0.44	0.15	0.48	0.50	0.50	0.53	0.53	0.52	0.52

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $333,313K ÷ $711,420K
= 0.47

The current ratio of The Cheesecake Factory has shown fluctuations over the reported periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from a low of 0.10 on October 31, 2023, to a high of 0.53 on multiple occasions, including December 31, 2022, and January 31, 2023.

The downward trend observed in the current ratio from June 30, 2023, to July 31, 2023, where it dropped significantly to 0.15, may indicate potential liquidity challenges or difficulties in meeting short-term obligations during that period. However, it is essential to consider additional financial metrics and contextual factors to fully understand the implications of such fluctuations.

The current ratio has shown some recovery and stability in the subsequent periods, ranging from 0.43 to 0.47 up to January 31, 2025. While the current ratio provides insight into the company's short-term financial health and liquidity position, investors and analysts should consider it alongside other ratios and qualitative factors to gain a comprehensive understanding of The Cheesecake Factory's overall financial strength and performance.