The Cheesecake Factory (CAKE)

Debt-to-equity 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-equity ratio 0.00 1.02 0.00 1.48 0.00

January 31, 2025 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $443,455K
= 0.00

The debt-to-equity ratio of The Cheesecake Factory has fluctuated over the past few years. As of January 31, 2023, the company had no debt, resulting in a debt-to-equity ratio of 0.00. However, by December 31, 2023, the ratio increased to 1.48, indicating that the company had taken on more debt relative to its equity. This suggests a higher level of financial leverage. Subsequently, the ratio decreased to 0.00 as of January 31, 2024, reflecting a reduction in debt compared to equity.

By December 31, 2024, the debt-to-equity ratio stood at 1.02, indicating a moderate level of debt in relation to equity. This suggests that the company may be utilizing debt financing as part of its capital structure. As of January 31, 2025, the ratio returned to 0.00, signaling a decrease in debt levels.

Overall, the fluctuations in The Cheesecake Factory's debt-to-equity ratio suggest varying levels of reliance on debt financing during the period under review. It is important for investors and stakeholders to monitor these changes to assess the company's financial risk profile and capital structure strategies.