The Cheesecake Factory (CAKE)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	290,000	335,000	35,000	20,000
Total stockholders’ equity	US$ in thousands	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	571,742	533,816	540,279	542,244
Debt-to-equity ratio		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	0.51	0.63	0.06	0.04

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $470,047K ÷ $318,062K
= 1.48

The debt-to-equity ratio of The Cheesecake Factory has shown fluctuating trends over the past few quarters. The ratio increased from 1.06 in March 2020 to 1.56 in March 2023, which indicates a rising level of leverage in the company's capital structure. However, it decreased to 0.88 in June 2021, suggesting a temporary reduction in debt relative to equity.

Subsequently, the ratio rose to 1.63 by June 2022 before declining to 1.29 by September 2022. This pattern indicates some volatility in the company's debt and equity mix.

The most recent data point as of December 2023 shows a debt-to-equity ratio of 1.48, signaling a moderate level of debt utilization compared to equity in the company's financing. Overall, it appears that The Cheesecake Factory has been managing its debt levels to finance its operations while also considering its equity position, although the ratio has shown some variability in recent periods.