The Cheesecake Factory (CAKE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.61% | 53.42% | 53.28% | 53.12% | 53.32% | 70.95% | 65.19% | 59.06% | 53.13% | 31.60% | 32.45% | 33.23% | 33.58% | 47.99% | 48.65% | 49.55% | 48.17% | 51.58% | 69.48% | 82.58% |
| Operating profit margin | 4.98% | 3.95% | 3.57% | 3.29% | 3.16% | 2.47% | 1.88% | 1.32% | 1.18% | 1.73% | 2.81% | 3.29% | 2.81% | 1.57% | -0.96% | -7.44% | -17.52% | -14.24% | -10.97% | -4.67% |
| Pretax margin | 4.78% | 3.71% | 3.33% | 3.05% | 2.91% | 2.23% | 1.66% | 1.13% | 1.00% | 1.56% | 2.62% | 2.98% | 2.45% | 1.17% | -1.44% | -7.93% | -17.95% | -12.20% | -9.34% | -3.20% |
| Net profit margin | 4.38% | 3.63% | 3.32% | 3.07% | 2.95% | 2.47% | 1.91% | 1.42% | 1.31% | 1.52% | 2.65% | 2.96% | 2.47% | 1.40% | -0.93% | -5.68% | -12.78% | -8.12% | -5.84% | -1.44% |
The Gross Profit Margin of The Cheesecake Factory has seen fluctuations over the years, ranging from a high of 82.58% in March 2020 to a low of 31.60% in September 2022. The trend shows a decrease in profitability up to December 2022 but then an increase to reach 53.61% by December 2024.
The Operating Profit Margin was negative in the earlier periods but gradually improved to positive figures. It started at -4.67% in March 2020, reaching 4.98% by December 2024, indicating a consistent effort to enhance operational efficiency and control costs.
Similarly, the Pretax Margin and Net Profit Margin of The Cheesecake Factory displayed improvements over the years. Both margins were negative in the earlier periods but turned positive by September 2021. The Pretax and Net Profit Margins both saw positive trends, reflecting the company's ability to generate income and control expenses effectively.
Overall, the profitability ratios of The Cheesecake Factory show a mixed performance with fluctuations in margins over time, but a general trend towards improved profitability and efficiency management from negative to positive margins.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.86% | 4.76% | 4.35% | 4.02% | 3.82% | 3.07% | 2.31% | 1.62% | 1.40% | 2.01% | 3.20% | 3.70% | 2.94% | 1.56% | -0.87% | -5.43% | -12.65% | -10.69% | -8.38% | -4.36% |
| Return on assets (ROA) | 5.15% | 4.37% | 4.04% | 3.75% | 3.57% | 3.07% | 2.35% | 1.75% | 1.55% | 1.78% | 3.02% | 3.33% | 2.59% | 1.40% | -0.85% | -4.14% | -9.22% | -6.09% | -4.46% | -1.34% |
| Return on total capital | 19.91% | 16.11% | 14.81% | 14.19% | 13.78% | 10.78% | 8.06% | 5.80% | 5.12% | 6.96% | 10.69% | 12.39% | 10.34% | 5.40% | -3.16% | -24.90% | -61.09% | -43.28% | -33.03% | -14.59% |
| Return on equity (ROE) | 35.35% | 32.37% | 31.09% | 32.03% | 31.87% | 26.54% | 19.95% | 16.01% | 14.77% | 15.00% | 23.12% | 25.80% | 21.92% | 11.79% | -8.11% | -35.81% | -87.76% | -53.48% | -36.34% | -8.56% |
The Cheesecake Factory's profitability ratios have shown a positive trend over the past few years.
- The Operating return on assets (Operating ROA) has increased steadily from -4.36% in March 2020 to 5.86% in December 2024. This indicates that the company has been able to generate more earnings from its operating activities relative to its total assets.
- The Return on assets (ROA) has also shown improvement, starting from -1.34% in March 2020 and reaching 5.15% in December 2024. This ratio reflects the company's ability to generate profits from its total assets.
- Return on total capital has shown significant improvement, increasing from -14.59% in March 2020 to 19.91% in December 2024. This ratio indicates the overall return generated on the total capital invested in the business.
- Return on equity (ROE) has also exhibited a positive trend, starting from -8.56% in March 2020 and reaching 35.35% in December 2024. This ratio shows the return generated on the shareholders' equity.
Overall, the improving profitability ratios suggest that The Cheesecake Factory has been able to enhance its operational efficiency and generate higher returns for its investors over the years.