The Cheesecake Factory (CAKE)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	127,293	94,762	112,167	111,200
Total assets	US$ in thousands	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	2,840,590	2,381,770	2,073,790	2,076,080
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $101,351K ÷ $2,840,380K
= 3.57%

The return on assets (ROA) for The Cheesecake Factory has shown volatility over the time period indicated in the table. ROA is a measure of how effectively a company is able to generate profits from its assets. Looking at the trend in ROA over the quarters, we observe fluctuations in performance.

In the latest quarter, Dec 31, 2023, the ROA was at 3.57%, showing an improvement from the previous quarter. While the ROA was relatively stable in the recent quarters, it had experienced negative ROA values in the earlier part of the period presented.

The company's ROA was at its lowest in the first quarter of 2020, when it recorded a negative ROA of -9.22%. This indicates that during that period, the company was not efficiently generating profits from its assets. However, since then, there has been an improvement in the company's ability to generate returns from its assets.

It is essential for investors and stakeholders to closely monitor The Cheesecake Factory's ROA as it reflects the company's profitability relative to its total assets. The recent positive trend in ROA may suggest improved operational efficiency and profitability, but the company needs to sustain this performance in the long term to create value for its shareholders.