The Cheesecake Factory (CAKE)
Return on total capital
| Jan 31, 2025 | Dec 31, 2024 | Jan 31, 2024 | Dec 31, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 181,154 | 178,317 | 109,766 | 108,566 | 83,190 |
| Long-term debt | US$ in thousands | — | 452,062 | — | 470,047 | — |
| Total stockholders’ equity | US$ in thousands | 443,455 | 443,455 | 318,062 | 318,062 | 292,003 |
| Return on total capital | 40.85% | 19.91% | 34.51% | 13.78% | 28.49% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $181,154K ÷ ($—K + $443,455K)
= 40.85%
The Return on Total Capital (RoTC) for The Cheesecake Factory has shown fluctuations over the time period specified. In January 2023, the RoTC was 28.49%, which decreased to 13.78% by December 2023. However, there was a significant improvement in January 2024 with a RoTC of 34.51%. The trend continued with a slight decrease to 19.91% in December 2024 but then saw a substantial increase to 40.85% in January 2025. Overall, the RoTC has exhibited volatility but has shown an increasing trend, indicating an improvement in the company's efficiency in generating returns from its total capital over time.
Peer comparison
Jan 31, 2025