The Cheesecake Factory (CAKE)

Debt-to-assets ratio

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
Long-term debt US$ in thousands 452,062 471,558 471,054 470,551 470,047 469,543 469,040 468,536 468,032 467,528 467,025 466,521 466,017 465,514 465,010 280,000 280,000 376,000 376,000 380,000
Total assets US$ in thousands 3,041,760 2,935,790 2,879,590 2,837,640 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
Debt-to-assets ratio 0.15 0.16 0.16 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.10 0.10 0.13 0.13 0.14

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $452,062K ÷ $3,041,760K
= 0.15

The debt-to-assets ratio of The Cheesecake Factory has shown a general trend of stability over the period from March 31, 2020, to December 31, 2024. The ratio started at 0.14 on March 31, 2020, and decreased slightly to 0.10 by December 31, 2020. However, from June 30, 2021, to December 31, 2024, the ratio remained relatively constant at around 0.16 to 0.17.

A debt-to-assets ratio of 0.17 indicates that for every dollar of assets, The Cheesecake Factory has $0.17 of debt. This suggests that the company relies moderately on debt financing to support its operations and investments, with a significant portion of its assets funded by creditors.

The stability of the debt-to-assets ratio can signify that The Cheesecake Factory has been maintaining a healthy balance between debt and assets, potentially indicating a sustainable financial position. However, further analysis of the company's overall financial health and strategic decisions would be necessary to assess the implications of this debt ratio on its long-term performance and risk profile.