The Cheesecake Factory (CAKE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.61% | 53.32% | 53.13% | 33.58% | 22.94% |
| Operating profit margin | 4.98% | 3.16% | 1.18% | 2.81% | -17.53% |
| Pretax margin | 4.78% | 2.91% | 1.00% | 2.45% | -17.96% |
| Net profit margin | 4.38% | 2.95% | 1.31% | 2.47% | -12.78% |
The Cheesecake Factory has shown significant improvement in its profitability ratios over the past few years. The gross profit margin has increased steadily from 22.94% in December 31, 2020, to 53.61% in December 31, 2024, indicating the company's ability to effectively manage production costs and generate higher revenues.
Similarly, the operating profit margin has shown a positive trend, moving from -17.53% in December 31, 2020, to 4.98% in December 31, 2024. This indicates improved operational efficiency and cost management by the company.
The pretax margin and net profit margin have also experienced growth over the same period. The pretax margin increased from -17.96% in December 31, 2020, to 4.78% in December 31, 2024, while the net profit margin rose from -12.78% to 4.38% during the same period. This indicates that the company has been able to control its expenses, increase revenues, and improve overall profitability.
Overall, The Cheesecake Factory's profitability ratios have shown a positive trend, reflecting the company's efforts to enhance operational efficiency and drive sustainable growth in profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.86% | 3.82% | 1.40% | 2.94% | -12.65% |
| Return on assets (ROA) | 5.15% | 3.57% | 1.55% | 2.59% | -9.22% |
| Return on total capital | 19.91% | 13.78% | 5.12% | 10.34% | -61.09% |
| Return on equity (ROE) | 35.35% | 31.87% | 14.77% | 21.92% | -87.76% |
The profitability ratios of The Cheesecake Factory have shown an improving trend over the years.
- Operating return on assets has gradually increased from -12.65% in December 2020 to 5.86% in December 2024, indicating that the company is generating more operating profit from its assets.
- Return on assets has also improved from -9.22% in December 2020 to 5.15% in December 2024, reflecting an enhancement in overall profitability generated from its total assets.
- Return on total capital has notably increased from -61.09% in December 2020 to 19.91% in December 2024, suggesting the company is utilizing its total capital more efficiently to generate returns.
- Return on equity has shown a significant improvement, rising from -87.76% in December 2020 to 35.35% in December 2024, indicating enhanced profitability for the shareholders.
Overall, The Cheesecake Factory's profitability ratios demonstrate a positive trajectory, with increasing returns on assets, capital, and equity over the years, highlighting improved efficiency and profitability in the company's operations.