The Cheesecake Factory (CAKE)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	452,062	470,047	468,032	466,017	280,000
Total stockholders’ equity	US$ in thousands	443,455	318,062	292,003	330,166	288,693
Debt-to-capital ratio		0.50	0.60	0.62	0.59	0.49

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $452,062K ÷ ($452,062K + $443,455K)
= 0.50

The debt-to-capital ratio for The Cheesecake Factory has shown a fluctuating trend over the past five years. Starting at 0.49 as of December 31, 2020, the ratio increased to 0.59 by the end of 2021, indicating a higher proportion of debt relative to the company's capital structure. Subsequently, the ratio continued to rise to 0.62 by December 31, 2022, suggesting an increasing reliance on debt financing.

However, there was a slight decrease in the debt-to-capital ratio to 0.60 by the end of 2023, hinting at a potential effort to reduce the debt levels or an increase in capital components. Finally, the ratio declined further to 0.50 as of December 31, 2024, which could signify a more balanced mix of debt and equity in the company's financial structure.

Overall, the varying levels of the debt-to-capital ratio over the five-year period suggest that The Cheesecake Factory has been actively managing its debt levels and capital structure to achieve financial stability and efficiency. It is essential to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health accurately.