The Cheesecake Factory (CAKE)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	318,062	292,003	330,166	288,693	571,742
Debt-to-capital ratio		0.60	0.62	0.59	0.49	0.34

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $470,047K ÷ ($470,047K + $318,062K)
= 0.60

The debt-to-capital ratio of The Cheesecake Factory has been fluctuating over the past five years. In 2019, the ratio stood at 0.34, indicating that the company had relatively low debt compared to its capital structure. However, the ratio increased to 0.49 in 2020, suggesting a higher level of debt relative to capital employed.

Subsequently, there was a significant uptick in the ratio to 0.59 in 2021, indicating a further increase in debt compared to capital. The ratio reached its highest point in 2022 at 0.62, signifying a substantial reliance on debt within the company's capital structure.

In the most recent year, 2023, the debt-to-capital ratio declined slightly to 0.60 but still remains relatively high compared to previous years. This trend suggests that The Cheesecake Factory has been gradually increasing its debt levels compared to its capital base over the observed period.

Overall, the fluctuating debt-to-capital ratio of The Cheesecake Factory highlights the company's changing leverage position and the need for careful monitoring of its debt management practices.