The Cheesecake Factory (CAKE)

Return on assets (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
Net income (ttm) US$ in thousands 142,296 153,586 164,876 168,073 171,270 131,507 91,744 76,498 61,252 91,246 121,240 131,345 141,450 95,477 49,504 19,056 -11,392 17,562 46,516 72,077
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
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%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $142,296K ÷ $3,041,760K
= 4.68%

The return on assets (ROA) is a key financial ratio that measures a company's ability to generate profit from its assets. The Cheesecake Factory's ROA has shown fluctuations over the period from September 30, 2022, to January 31, 2025.

The ROA started at 2.64% in September 30, 2022, then gradually declined to reach a low of -0.41% in January 31, 2023, indicating a period of lower profitability relative to its assets. However, the company's performance improved in the following quarters, with ROA increasing to 5.11% by July 31, 2023.

From September 30, 2023, to December 31, 2024, The Cheesecake Factory maintained a relatively stable and positive ROA ranging from 3.21% to 5.95%. This suggests that the company was able to efficiently utilize its assets to generate profits during this period.

Overall, The Cheesecake Factory's ROA has shown variability but generally demonstrated an upward trend from 2023 to 2024, indicating improved profitability relative to its assets. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's operational efficiency and financial performance.