The Cheesecake Factory (CAKE)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.77% | 31.11% | 34.82% | 34.97% | 35.07% | 34.97% | 30.82% | 37.84% | 37.45% | 44.94% | 48.92% | 48.84% | 49.19% | 48.67% | 62.15% | 55.06% | 48.68% | 41.33% | 19.95% | 27.78% |
| Operating profit margin | 4.50% | 5.08% | 5.45% | 5.82% | 5.93% | 5.60% | 4.22% | 3.45% | 2.92% | 2.75% | 3.92% | 4.31% | 4.70% | 4.06% | 2.25% | 1.41% | 0.37% | 0.54% | 1.88% | 2.65% |
| Pretax margin | 4.32% | 4.65% | 4.98% | 5.11% | 5.23% | 3.85% | 2.44% | 1.89% | 1.33% | 2.50% | 3.67% | 4.07% | 4.47% | 2.64% | 0.84% | -0.17% | -1.24% | 0.08% | 1.44% | 2.37% |
| Net profit margin | 3.98% | 4.32% | 4.66% | 4.71% | 4.77% | 3.69% | 2.59% | 2.20% | 1.79% | 2.68% | 3.57% | 3.83% | 4.08% | 2.73% | 1.41% | 0.55% | -0.34% | 0.53% | 1.44% | 2.22% |
The Cheesecake Factory's profitability ratios have shown fluctuations over the past few years. The gross profit margin has ranged from a low of 19.95% in October 2022 to a high of 62.15% in April 2023, indicating variability in the company's ability to generate profits after accounting for the cost of goods sold. However, the margin generally trended downward, reaching 31.11% by December 2024.
In terms of operating profit margin, the company's performance improved consistently from 0.54% in December 2022 to 5.93% in July 2024. This metric highlights the efficiency of The Cheesecake Factory in managing its operating expenses and generating profits from its core business activities.
The pretax margin, reflecting the company's profitability before tax expenses, also exhibited a positive trend over the period from -1.24% in January 2023 to 5.23% in July 2024, with occasional fluctuations indicating the company's ability to control costs and increase revenues.
The net profit margin, which represents the company's bottom line profitability, improved steadily from -0.34% in January 2023 to 4.77% in July 2024. This indicates The Cheesecake Factory's ability to enhance its net income relative to its revenue, although there was a slight decline to 3.98% by January 2025.
Overall, The Cheesecake Factory's profitability ratios demonstrate a mix of fluctuations and general improvements in different profit margins over the analyzed period, reflecting varying levels of operational efficiency and financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.68% | 5.05% | 5.62% | 5.72% | 5.95% | 4.57% | 3.23% | 2.70% | 2.16% | 3.21% | 4.38% | 4.73% | 5.11% | 3.45% | 1.81% | 0.69% | -0.41% | 0.63% | 1.70% | 2.64% |
| Return on total capital | 36.87% | 20.17% | 48.62% | 23.90% | 56.95% | 23.63% | 44.87% | 15.10% | 31.76% | 12.15% | 42.00% | 19.21% | 51.20% | 13.04% | 13.69% | 0.19% | -11.87% | 1.63% | 17.15% | 11.01% |
| Return on equity (ROE) | 32.09% | 34.63% | 41.60% | 42.40% | 45.80% | 35.16% | 27.60% | 23.01% | 19.26% | 28.69% | 37.69% | 40.84% | 43.40% | 29.30% | 16.51% | 6.36% | -3.90% | 6.01% | 14.38% | 22.28% |
The profitability ratios of The Cheesecake Factory show a consistent improvement over the reporting period.
- Operating return on assets (Operating ROA) increased from 3.15% in September 2022 to 5.28% in January 2025, indicating that the company's operating income generated from its assets has been increasing steadily.
- Return on assets (ROA) also showed a positive trend, starting at 2.64% in September 2022 and reaching 4.68% in January 2025. This indicates that the company's overall profitability in relation to its total assets has been improving.
- Return on total capital ranged from negative values to 56.95% in July 2024, showing significant variability. However, there is an overall upward trend in profitability generated from the total capital employed by the company.
- Return on equity (ROE) started at 22.28% in September 2022 and increased to 32.09% in January 2025. This indicates that the company has been effectively utilizing shareholder equity to generate profits.
Overall, The Cheesecake Factory has shown a consistent improvement in profitability ratios over the reporting period, reflecting positively on its operational efficiency and ability to generate returns for its shareholders.