The Cheesecake Factory (CAKE)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 156,783 101,351 43,123 72,373 -253,365
Total assets US$ in thousands 3,041,760 2,840,380 2,775,220 2,798,120 2,747,050
ROA 5.15% 3.57% 1.55% 2.59% -9.22%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $156,783K ÷ $3,041,760K
= 5.15%

The return on assets (ROA) of The Cheesecake Factory saw a significant improvement from -9.22% as of December 31, 2020, to 5.15% as of December 31, 2024. This indicates that the company has been able to generate a higher return relative to its total assets over the years. The positive trend in ROA suggests that The Cheesecake Factory has been utilizing its assets more efficiently to generate profits for its stakeholders. The improvement in ROA signifies a positive financial performance and effective asset management by the company.