The Cheesecake Factory (CAKE)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	108,566	85,304	64,069	44,540	38,935	55,037	88,619	101,795	82,318	42,528	-23,707	-148,535	-347,437	-302,239	-240,417	-116,608	103,598	116,570	123,101	117,545
Long-term debt	US$ in thousands	470,047	469,543	469,040	468,536	468,032	467,528	467,025	466,521	466,017	465,514	465,010	280,000	280,000	376,000	376,000	380,000	290,000	335,000	35,000	20,000
Total stockholders’ equity	US$ in thousands	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	571,742	533,816	540,279	542,244
Return on total capital		13.78%	10.78%	8.06%	5.80%	5.12%	6.96%	10.69%	12.39%	10.34%	5.40%	-3.16%	-24.90%	-61.09%	-43.28%	-33.03%	-14.59%	12.02%	13.42%	21.40%	20.91%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $108,566K ÷ ($470,047K + $318,062K)
= 13.78%

The return on total capital for The Cheesecake Factory has shown fluctuations over the past several quarters. The latest figure of 13.78% as of December 31, 2023, indicates an improvement from the previous quarter but is lower compared to the peak performance in the same quarter of the previous year. The return on total capital has generally been positive, with the lowest point recorded in the first quarter of 2021. The company experienced a significant decline in return on total capital during the first half of 2021, with negative values in the first and second quarters, before gradually recovering in subsequent quarters.

Overall, the return on total capital trend for The Cheesecake Factory reflects variability in the company's ability to generate profits relative to its total capital investment. It is crucial for investors and stakeholders to monitor this metric closely to assess the company's operational efficiency and profitability over time.