The Cheesecake Factory (CAKE)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	333,313	286,538	277,935	283,572	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
Total current liabilities	US$ in thousands	711,420	651,893	642,607	654,501	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
Current ratio		0.47	0.44	0.43	0.43	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

December 31, 2024 calculation

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

The current ratio of The Cheesecake Factory has fluctuated over the period analyzed. It started at a relatively low level of 0.53 on March 31, 2020, indicating that the company had $0.53 in current assets for every $1 of current liabilities.

There was a gradual increase in the current ratio to 0.85 by June 30, 2020, suggesting improved liquidity and the ability to meet short-term obligations more effectively. However, the ratio decreased to 0.58 by the end of December 2020, indicating a potential strain on the company's ability to cover its current liabilities.

Subsequently, there were further fluctuations in the current ratio, with values ranging between 0.44 and 0.63 until December 31, 2024. The current ratio hovered around 0.50 during the last few periods, implying a potential ongoing challenge for the company in meeting its short-term obligations.

Overall, the current ratio trend suggests that The Cheesecake Factory has had varying levels of liquidity over the analyzed period, which may impact its ability to manage short-term financial obligations effectively. Further analysis and monitoring of the current ratio would be valuable to assess the company's liquidity position accurately.