The Cheesecake Factory (CAKE)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	108,566	38,935	82,318	-347,437	103,598
Total assets	US$ in thousands	2,840,380	2,775,220	2,798,120	2,747,050	2,840,590
Operating ROA		3.82%	1.40%	2.94%	-12.65%	3.65%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $108,566K ÷ $2,840,380K
= 3.82%

The operating return on assets (ROA) for The Cheesecake Factory has varied over the past five years. In 2023, the operating ROA improved significantly to 3.82%, showing a positive trend compared to the previous two years. This indicates that the company generated $0.0382 in operating income for each dollar of assets in 2023.

In 2022, the operating ROA was relatively low at 1.40%, suggesting a lower efficiency in generating operating income from its assets compared to the following year. The significant improvement in 2023 indicates that the company may have made operational adjustments to enhance asset utilization and profitability.

In 2021, the operating ROA was 2.94%, demonstrating a moderate performance level in generating operating income relative to assets. The negative operating ROA of -12.65% in 2020 indicates a significant loss in operating income compared to the value of assets during that year, possibly due to challenges faced by the company.

Finally, in 2019, the operating ROA was 3.65%, reflecting a solid performance in profitability relative to assets. Overall, the improvement in operating ROA in 2023 compared to the previous years showcases a positive trend in the company's operational efficiency and effectiveness in generating income from its assets.