The Cheesecake Factory (CAKE)

Debt-to-equity ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Long-term debt US$ in thousands 452,062 471,558 471,054 470,551 470,047 469,543 469,040 468,536 468,032 467,528 467,025 466,521 466,017 465,514 465,010 280,000 280,000 376,000 376,000 380,000
Total stockholders’ equity US$ in thousands 443,455 396,379 373,980 332,438 318,062 321,644 325,903 299,839 292,003 323,496 361,684 355,326 330,166 321,946 284,608 316,514 288,693 322,276 351,929 418,971
Debt-to-equity ratio 1.02 1.19 1.26 1.42 1.48 1.46 1.44 1.56 1.60 1.45 1.29 1.31 1.41 1.45 1.63 0.88 0.97 1.17 1.07 0.91

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $452,062K ÷ $443,455K
= 1.02

The debt-to-equity ratio of The Cheesecake Factory has been fluctuating over the past few years, indicating changes in the company's capital structure and financial leverage.

From March 2020 to June 2021, the debt-to-equity ratio steadily increased from 0.91 to 1.63, suggesting that the company took on more debt relative to its equity during this period. This could indicate a higher level of financial risk for the company.

However, starting from June 2021 to December 2024, the ratio fluctuated within a range of 1.02 to 1.60. While the ratio remained above 1, indicating higher debt levels relative to equity, it also suggests a level of stability in the company's capital structure during this time.

Overall, the trend in The Cheesecake Factory's debt-to-equity ratio indicates that the company has been relying more on debt financing compared to equity, which could lead to increased financial risk and interest expense. Investors and analysts may want to monitor these ratios closely to assess the company's financial health and risk levels.