The Cheesecake Factory (CAKE)

Debt-to-assets ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 470,047 468,032 466,017 280,000 290,000
Total assets US$ in thousands 2,840,380 2,775,220 2,798,120 2,747,050 2,840,590
Debt-to-assets ratio 0.17 0.17 0.17 0.10 0.10

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $470,047K ÷ $2,840,380K
= 0.17

The debt-to-assets ratio of The Cheesecake Factory has remained relatively stable over the past five years, consistently hovering around 0.17 from 2021 to 2023. This indicates that the company's level of debt in relation to its total assets has been consistent during this period.

Comparing the most recent ratios to those from 2020 and 2019, we see a slight increase from 0.10 to 0.17. This suggests that The Cheesecake Factory may have taken on more debt relative to its assets in the recent years, potentially to finance expansions or other strategic initiatives.

Overall, a debt-to-assets ratio of 0.17 indicates that The Cheesecake Factory relies on debt to finance a relatively small portion of its assets, with the majority of its assets funded by equity. However, it is essential for the company to manage its debt levels effectively to ensure financial stability and sustainability in the long term.