The Cheesecake Factory (CAKE)

Debt-to-assets ratio

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
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
Total assets	US$ in thousands	3,041,760	3,041,760	2,935,790	2,935,790	2,879,590	2,879,590	2,837,640	2,837,640	2,840,380	2,840,380	2,769,710	2,776,890	2,769,710	2,769,710	2,742,490	2,742,490	2,775,220	2,775,220	2,734,070	2,734,070
Debt-to-assets ratio		0.00	0.15	0.00	0.16	0.00	0.16	0.00	0.17	0.00	0.17	0.00	0.17	0.00	0.17	0.00	0.17	0.00	0.17	0.00	0.17

January 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,041,760K
= 0.00

The debt-to-assets ratio of The Cheesecake Factory has shown some fluctuations over the period from September 30, 2022, to January 31, 2025. This ratio calculates the proportion of the company's total debt to its total assets, reflecting the extent to which the company's assets are funded by debt.

The ratio ranged between 0.00 and 0.17 during this period, indicating varying levels of debt relative to assets. A lower ratio signifies that a smaller portion of the company's assets are financed by debt, indicating a lower financial risk. Conversely, a higher ratio suggests a greater reliance on debt to fund the company's operations, potentially increasing financial risk.

Overall, the trend in The Cheesecake Factory's debt-to-assets ratio shows alternating periods of higher and lower leverage, with an overall decreasing trend towards the end of the period, reaching 0.15 as of December 31, 2024. This reduction may indicate a strategy to lessen the company's reliance on debt for financing its operations, potentially improving its financial stability and creditworthiness.