The Cheesecake Factory (CAKE)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	156,783	128,310	116,261	106,492	101,351	85,372	65,029	48,010	43,123	48,531	83,609	91,668	72,373	37,946	-23,080	-113,334	-253,365	-172,339	-127,903	-35,854
Total assets	US$ in thousands	3,041,760	2,935,790	2,879,590	2,837,640	2,840,380	2,776,890	2,769,710	2,742,490	2,775,220	2,734,070	2,772,430	2,753,740	2,798,120	2,717,720	2,722,290	2,735,440	2,747,050	2,828,060	2,867,280	2,675,780
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%

December 31, 2024 calculation

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

The return on assets (ROA) for The Cheesecake Factory has exhibited a fluctuating trend over the past few years based on the provided data.

From March 31, 2020, to December 31, 2021, the ROA values were negative and ranged from -1.34% to -9.22%. This indicates that during this period, the company was not efficiently utilizing its assets to generate profits.

However, starting from March 31, 2022, there was a significant improvement in the ROA, with the percentage turning positive and continuously increasing. By December 31, 2024, the ROA reached 5.15%, reflecting a positive trend in the company's ability to generate profits relative to its total assets.

Overall, the increasing trend in ROA indicates that The Cheesecake Factory has been more efficient in utilizing its assets to generate profits in recent periods, which could signify improved operational performance and financial health.