The Cheesecake Factory (CAKE)

Financial leverage 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
Total assets	US$ in thousands	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	2,840,590	2,381,770	2,073,790	2,076,080
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
Financial leverage ratio		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	4.97	4.46	3.84	3.83

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,840,380K ÷ $318,062K
= 8.93

The financial leverage ratio for The Cheesecake Factory has been fluctuating over the past few quarters, indicating varying levels of leverage in the company's capital structure. The ratio has ranged from a low of 3.83 to a high of 9.57, with an average around 7.75.

A higher financial leverage ratio suggests that the company is relying more on debt to finance its operations, which could increase the risk for the business in terms of debt repayment and interest obligations. Conversely, a lower ratio indicates a more conservative approach to capital structure with a greater proportion of equity financing.

It is important to note that the trend in the financial leverage ratio should be monitored over time to assess the company's ability to manage its debt levels effectively and sustain financial stability. Additionally, comparing the ratio with industry benchmarks and the company's historical performance can provide further insights into its leverage position.