The Cheesecake Factory (CAKE)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	58,416	306,252	22,604	22,529
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	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	30,245	—	—	—
Total current liabilities	US$ in thousands	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	614,587	433,786	436,963	446,636
Quick ratio		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	0.14	0.71	0.05	0.05

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 shown fluctuations over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better short-term liquidity and financial health.

The trend in The Cheesecake Factory's quick ratio has been somewhat volatile, with values fluctuating between 0.05 and 0.71 over the past five years. The quick ratio has generally been below 1, indicating that the company may have difficulty meeting its short-term obligations with just its quick assets.

While the quick ratio improved from 0.05 in December 2019 to 0.71 in March 2019, it experienced a decline in subsequent quarters reaching its lowest at 0.05 in June 2019. From there, the quick ratio gradually improved, reaching its peak at 0.66 in June 2020. However, the ratio has since declined, with the latest reported figure at 0.12 in December 2023.

Overall, the trend of The Cheesecake Factory's quick ratio indicates that the company may have faced challenges in maintaining strong short-term liquidity in recent quarters. It would be advisable for stakeholders to closely monitor the company's ability to generate sufficient liquid assets to cover its short-term obligations.