The Cheesecake Factory (CAKE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	56,290	114,777	189,627	154,085	58,416
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	20,670	21,522	36,173	36,889	30,245
Total current liabilities	US$ in thousands	660,671	656,678	636,273	586,067	614,587
Quick ratio		0.12	0.21	0.35	0.33	0.14

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($56,290K + $—K + $20,670K) ÷ $660,671K
= 0.12

The quick ratio of The Cheesecake Factory has fluctuated over the past five years, indicating varying levels of liquidity. The trend shows that in 2023, the quick ratio decreased to 0.12 from 0.21 in 2022, which may raise concerns about the company's ability to meet its short-term obligations with its most liquid assets. However, it is worth noting that the quick ratio was higher in 2021 at 0.35 and slightly lower in 2020 at 0.33, suggesting improved liquidity levels during those years. The lowest quick ratio was observed in 2019 at 0.14, indicating limited ability to cover short-term liabilities with liquid assets at that time. Overall, the fluctuating quick ratio of The Cheesecake Factory highlights the importance of closely monitoring liquidity management to ensure the company's financial health and stability.