The Cheesecake Factory (CAKE)

Financial leverage 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
Total assets US$ in thousands 3,041,760 2,935,790 2,879,590 2,837,640 2,840,380 2,776,890 2,769,710 2,742,490 2,775,220 2,734,070 2,772,430 2,753,740 2,798,120 2,717,720 2,722,290 2,735,440 2,747,050 2,828,060 2,867,280 2,675,780
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
Financial leverage ratio 6.86 7.41 7.70 8.54 8.93 8.63 8.50 9.15 9.50 8.45 7.67 7.75 8.47 8.44 9.57 8.64 9.52 8.78 8.15 6.39

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 shown fluctuations over the periods provided in the data. The ratio increased from 6.39 on March 31, 2020, to a peak of 9.52 on December 31, 2020. Subsequently, there was a decrease in the ratio to 7.67 on June 30, 2022, followed by fluctuations within a range of 7.41 to 9.50 until December 31, 2024.

The increasing trend in the financial leverage ratio from 2020 to 2020 indicates that the company relied more on debt to finance its operations and investments during that period. This could be a strategic decision to leverage debt for growth opportunities or a response to financial challenges.

The subsequent fluctuations in the ratio from 2022 to 2024 suggest that The Cheesecake Factory may have adjusted its capital structure or debt levels during these periods. These fluctuations could be influenced by changes in business strategies, market conditions, or operational performance.

Overall, analyzing the financial leverage ratio of The Cheesecake Factory provides insights into the company's capital structure and debt management practices over the years, highlighting periods of increased leverage and possible adjustments in financial decisions.