The Cheesecake Factory (CAKE)

Operating return on assets (Operating ROA)

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Operating income (ttm)	US$ in thousands	160,664	180,657	192,717	207,394	212,987	199,703	149,150	119,803	99,540	93,670	133,002	147,898	162,794	141,722	79,128	48,405	12,274	17,818	60,883	86,001
Total assets	US$ in thousands	3,041,760	3,041,760	2,935,790	2,935,790	2,879,590	2,879,590	2,837,640	2,837,640	2,840,380	2,840,380	2,769,710	2,776,890	2,769,710	2,769,710	2,742,490	2,742,490	2,775,220	2,775,220	2,734,070	2,734,070
Operating ROA		5.28%	5.94%	6.56%	7.06%	7.40%	6.94%	5.26%	4.22%	3.50%	3.30%	4.80%	5.33%	5.88%	5.12%	2.89%	1.77%	0.44%	0.64%	2.23%	3.15%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $160,664K ÷ $3,041,760K
= 5.28%

The Cheesecake Factory's operating return on assets (operating ROA) has shown fluctuating trends over the period from September 2022 to January 2025. Initially, the operating ROA was relatively low, hovering around 1-2%, indicating that the company was generating modest returns on its assets.

However, starting from June 2023, there was a noticeable improvement in the operating ROA, with the ratio steadily increasing to reach a peak of 7.40% in July 2024. This suggests that the company became more efficient in utilizing its assets to generate operating income during this period.

Subsequently, the operating ROA experienced a slight decline but remained at relatively elevated levels, indicating that The Cheesecake Factory was still effectively leveraging its assets to generate profits.

Overall, the upward trend in the operating ROA from mid-2023 to mid-2024 reflects improved operational efficiency and profitability for The Cheesecake Factory.