The Cheesecake Factory (CAKE)

Financial leverage ratio

Jan 31, 2025 Dec 31, 2024 Oct 31, 2024 Sep 30, 2024 Jul 31, 2024 Jun 30, 2024 Apr 30, 2024 Mar 31, 2024 Jan 31, 2024 Dec 31, 2023 Oct 31, 2023 Sep 30, 2023 Jul 31, 2023 Jun 30, 2023 Apr 30, 2023 Mar 31, 2023 Jan 31, 2023 Dec 31, 2022 Oct 31, 2022 Sep 30, 2022
Total assets US$ in thousands 3,041,760 3,041,760 2,935,790 2,935,790 2,879,590 2,879,590 2,837,640 2,837,640 2,840,380 2,840,380 2,769,710 2,776,890 2,769,710 2,769,710 2,742,490 2,742,490 2,775,220 2,775,220 2,734,070 2,734,070
Total stockholders’ equity US$ in thousands 443,455 443,455 396,379 396,379 373,980 373,980 332,438 332,438 318,062 318,062 321,644 321,644 325,903 325,903 299,839 299,839 292,003 292,003 323,496 323,496
Financial leverage ratio 6.86 6.86 7.41 7.41 7.70 7.70 8.54 8.54 8.93 8.93 8.61 8.63 8.50 8.50 9.15 9.15 9.50 9.50 8.45 8.45

January 31, 2025 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 reported periods. As of January 31, 2025, the ratio stands at 6.86, indicating that the company's reliance on debt to finance its operations has decreased. This suggests a healthier financial position as the company is relying less on borrowed funds to support its activities. The downward trend in the financial leverage ratio from a high of 9.50 on December 31, 2022, to the current level reflects a potential decrease in financial risk and improved stability in the company's capital structure. This trend may imply effective management of debt levels and a stronger equity position. Overall, a decreasing financial leverage ratio signals a positive outlook for The Cheesecake Factory in terms of its ability to meet its financial obligations and weather potential economic challenges.