The Cheesecake Factory (CAKE)

Quick 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
Cash	US$ in thousands	84,176	52,215	40,654	60,220	56,290	63,987	91,557	116,164	114,777	133,157	194,891	183,556	189,627	131,030	161,768	181,345	154,085	243,768	250,155	81,023
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	17,417	28,980	24,855	19,838	20,670	23,923	22,739	—	21,522	23,692	39,791	36,893	36,173	39,510	34,655	34,973	36,889	71,868	101,945	72,041
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
Quick ratio		0.14	0.12	0.10	0.12	0.12	0.14	0.18	0.19	0.21	0.26	0.38	0.37	0.35	0.31	0.33	0.39	0.33	0.58	0.66	0.30

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($84,176K + $—K + $17,417K) ÷ $711,420K
= 0.14

The quick ratio of The Cheesecake Factory has shown fluctuations over the given time period. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has generally been below 1, indicating potential liquidity concerns.

Specifically, the quick ratio started at a low level of 0.30 as of March 31, 2020, before improving to 0.66 by June 30, 2020. However, it decreased to 0.33 by December 31, 2020, before experiencing some fluctuations but generally remaining below 0.5 for the following quarters.

Despite some improvements in the ratio, such as reaching 0.38 by June 30, 2022, the quick ratio trended downwards to 0.10 by June 30, 2024. This downward trend suggests that the company may be facing challenges in quickly converting its current assets into cash to settle its short-term liabilities.

Overall, the decreasing trend in the quick ratio of The Cheesecake Factory raises concerns about its short-term liquidity position and highlights the importance of closely monitoring the company's ability to meet its upcoming financial obligations.