The Cheesecake Factory (CAKE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,041,760 | 2,840,380 | 2,775,220 | 2,798,120 | 2,747,050 |
| Total stockholders’ equity | US$ in thousands | 443,455 | 318,062 | 292,003 | 330,166 | 288,693 |
| Financial leverage ratio | 6.86 | 8.93 | 9.50 | 8.47 | 9.52 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,041,760K ÷ $443,455K
= 6.86
The financial leverage ratio of The Cheesecake Factory has fluctuated over the past five years. It was 9.52 as of December 31, 2020, decreased to 8.47 by December 31, 2021, increased to 9.50 by December 31, 2022, dropped to 8.93 by December 31, 2023, and further declined to 6.86 by December 31, 2024. These figures indicate the company's utilization of debt relative to its equity to finance its operations and growth. The decreasing trend in the financial leverage ratio suggests a lower reliance on debt financing compared to equity, which could indicate a more conservative financial strategy or improved financial stability. However, it is important to further analyze the company's overall financial health and performance to fully assess the implications of these ratio fluctuations.
Peer comparison
Dec 31, 2024