The Cheesecake Factory (CAKE)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 443,455 396,379 373,980 332,438 318,062 321,644 325,903 299,839 292,003 323,496 361,684 355,326 330,166 321,946 284,608 316,514 288,693 322,276 351,929 418,971
ROE 35.35% 32.37% 31.09% 32.03% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $156,783K ÷ $443,455K
= 35.35%

The trend in The Cheesecake Factory's return on equity (ROE) over the past few years has been fluctuating. From negative figures in 2020, the ROE gradually improved to positive territory in 2021. Specifically, the ROE was negative throughout most of 2020 but turned positive by September 2021. The ROE continued its upward trajectory, reaching double-digit percentages by the end of 2021.

In the subsequent years up to 2024, The Cheesecake Factory sustained its positive ROE performance with consistent increases quarter by quarter. By the end of 2024, the ROE stood at a healthy 35.35%, signifying the company's ability to generate a solid return on the equity invested by its shareholders. This improvement in ROE indicates that the company is effectively utilizing its equity capital to generate profits and create value for its shareholders.