The Cheesecake Factory (CAKE)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.93% | 75.47% | 67.83% | 59.63% | 53.13% | 31.60% | 32.45% | 33.23% | 33.58% | 47.99% | 48.65% | 49.55% | 48.17% | 51.58% | 69.48% | 82.58% | 100.00% | 100.00% | 100.00% | 100.00% |
| Operating profit margin | 4.22% | 3.29% | 2.52% | 1.77% | 1.18% | 1.73% | 2.81% | 3.29% | 2.81% | 1.57% | -0.96% | -7.44% | -17.52% | -14.24% | -10.97% | -4.67% | 4.17% | 4.91% | 5.21% | 5.01% |
| Pretax margin | 3.89% | 2.98% | 2.22% | 1.52% | 1.00% | 1.56% | 2.62% | 2.98% | 2.45% | 1.17% | -1.44% | -7.93% | -17.95% | -12.20% | -9.34% | -3.20% | 5.65% | 4.18% | 4.99% | 5.00% |
| Net profit margin | 3.94% | 3.30% | 2.56% | 1.91% | 1.31% | 1.52% | 2.65% | 2.96% | 2.47% | 1.40% | -0.93% | -5.68% | -12.78% | -8.12% | -5.84% | -1.44% | 5.13% | 3.99% | 4.75% | 4.74% |
The profitability ratios of The Cheesecake Factory show fluctuations over the reporting periods. The gross profit margin, a measure of a company's efficiency in generating revenue after accounting for the cost of goods sold, has varied widely, ranging from a low of 31.60% to a high of 100.00%. This suggests potential shifts in pricing strategies or cost management.
The operating profit margin reflects the company's ability to control operating expenses relative to its revenue. The trend shows some volatility, with margins ranging from -17.52% to 3.29%. This indicates potential challenges in managing operating costs efficiently.
The pretax margin, which measures profitability before accounting for taxes, also displays variability, ranging from -17.95% to 5.65%. This suggests fluctuations in non-operating expenses or income affecting the company's overall profitability.
The net profit margin, representing the proportion of revenue that translates into net income after all expenses, has shown fluctuations from -12.78% to 5.13%. This indicates varying levels of effectiveness in managing non-operating expenses, such as interest payments or taxes, impacting the bottom line.
Overall, the Cheesecake Factory's profitability ratios exhibit significant variability over the periods analyzed, indicating potential challenges in maintaining consistent profitability levels. Further analysis of the company's cost structure, pricing strategies, and overall financial management practices may be warranted to address these fluctuations in profitability.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 3.65% | 4.89% | 5.94% | 5.66% |
| Return on assets (ROA) | 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% | 4.48% | 3.98% | 5.41% | 5.36% |
| Return on total capital | 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% | 12.02% | 13.42% | 21.40% | 20.91% |
| Return on equity (ROE) | 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% | 22.26% | 17.75% | 20.76% | 20.51% |
The profitability ratios of The Cheesecake Factory show varying levels of performance over the analyzed periods.
1. Operating return on assets (Operating ROA) has fluctuated, ranging from -5.43% to 3.82%. This ratio measures how efficiently the company is generating profits from its assets.
2. Return on assets (ROA) has also experienced fluctuations, ranging from -9.22% to 4.48%. ROA indicates the company's ability to generate profit relative to its total assets.
3. Return on total capital has shown a similar trend, with a range of -61.09% to 13.78%. This ratio evaluates the company's ability to generate profits from both equity and debt capital employed.
4. Return on equity (ROE) has varied widely, from -87.76% to 31.87%. ROE measures how effectively the company is using shareholders' equity to generate profit.
In general, the company's profitability ratios have shown volatility, with periods of negative performance and instances of improvement. It is important to closely monitor these ratios to assess the company's financial health and performance over time.