The Cheesecake Factory (CAKE)

Quick ratio

Jan 31, 2025 Dec 31, 2024 Jan 31, 2024 Dec 31, 2023 Jan 31, 2023
Cash US$ in thousands 84,176 84,176 56,290 56,290 114,777
Short-term investments US$ in thousands
Receivables US$ in thousands 17,417 20,670
Total current liabilities US$ in thousands 711,420 711,420 660,671 660,671 656,678
Quick ratio 0.12 0.14 0.09 0.12 0.17

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($84,176K + $—K + $—K) ÷ $711,420K
= 0.12

The quick ratio of The Cheesecake Factory has shown a declining trend over the past few years, starting at 0.17 as of January 31, 2023, and dropping to 0.12 as of December 31, 2023. This decreasing trend continued with a quick ratio of 0.09 as of January 31, 2024, signifying a potential liquidity concern. However, there was a slight improvement to 0.14 as of December 31, 2024. The quick ratio remained relatively stable at 0.12 as of January 31, 2025.

The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1 indicates the company may struggle to pay off its current liabilities using only its quick assets. The decreasing trend in The Cheesecake Factory's quick ratio signals potential challenges in meeting immediate financial obligations with readily available assets. Continued monitoring of liquidity management is recommended to ensure the company's financial health.