The Cheesecake Factory (CAKE)
Debt-to-capital ratio
| Jan 31, 2025 | Dec 31, 2024 | Jan 31, 2024 | Dec 31, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 452,062 | — | 470,047 | — |
| Total stockholders’ equity | US$ in thousands | 443,455 | 443,455 | 318,062 | 318,062 | 292,003 |
| Debt-to-capital ratio | 0.00 | 0.50 | 0.00 | 0.60 | 0.00 |
January 31, 2025 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $443,455K)
= 0.00
The debt-to-capital ratio measures the proportion of a company's capital that is financed by debt. Looking at the data for The Cheesecake Factory, the trend in the debt-to-capital ratio shows a fluctuation over the years:
- In January 2023 and January 2024, the company had a debt-to-capital ratio of 0.00, indicating that there was no debt financing in relation to its capital during those periods.
- By December 2023, the ratio increased to 0.60, suggesting that 60% of the company's capital was funded by debt at the end of that year.
- The ratio decreased to 0.50 by December 2024, showing a reduction in the proportion of debt financing relative to capital.
- In January 2025, the ratio returned to 0.00, indicating a reversion to a debt-free capital structure.
Overall, the fluctuation in The Cheesecake Factory's debt-to-capital ratio suggests a varying degree of reliance on debt financing over the years. It is essential to monitor this ratio to assess the company's financial leverage and risk management strategies.
Peer comparison
Jan 31, 2025