The Cheesecake Factory (CAKE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 178,317 | 108,566 | 38,935 | 82,318 | -347,437 |
| Total assets | US$ in thousands | 3,041,760 | 2,840,380 | 2,775,220 | 2,798,120 | 2,747,050 |
| Operating ROA | 5.86% | 3.82% | 1.40% | 2.94% | -12.65% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $178,317K ÷ $3,041,760K
= 5.86%
The operating return on assets (ROA) of The Cheesecake Factory has shown a positive trend over the past five years. The ROA was negative at -12.65% as of December 31, 2020, indicating that the company's operating income was not efficiently utilizing its assets.
However, there was a significant improvement in the operating ROA in the following years. By December 31, 2021, the ROA had turned positive at 2.94%, indicating that the company was generating operating income more efficiently relative to its assets.
Subsequently, the operating ROA further increased to 1.40% by December 31, 2022, and then experienced a more notable improvement to 3.82% by December 31, 2023, suggesting enhanced operational efficiency and profitability.
The most recent data point shows an operating ROA of 5.86% as of December 31, 2024, indicating that The Cheesecake Factory significantly improved its ability to generate operating income from its assets, reflecting effective management and operational performance.
Overall, the positive trend in The Cheesecake Factory's operating ROA over the past five years suggests that the company has been able to enhance its profitability and operational efficiency, potentially creating value for its shareholders.
Peer comparison
Dec 31, 2024