The Cheesecake Factory (CAKE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 178,317 | 108,566 | 38,935 | 82,318 | -347,437 |
| Interest expense | US$ in thousands | — | — | — | — | 800 |
| Interest coverage | — | — | — | — | -434.30 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $178,317K ÷ $—K
= —
The interest coverage ratio for The Cheesecake Factory as of December 31, 2020, stands at -434.30. This negative ratio indicates that the company's earnings before interest and taxes (EBIT) are insufficient to cover its interest expenses, which raises concerns about the company's ability to meet its interest obligations using its operating income. However, the absence of data for the subsequent years (2021, 2022, 2023, 2024) prevents a continuing analysis of the trend in interest coverage over time. The negative value for 2020 suggests that The Cheesecake Factory may be facing challenges in generating enough operating income to service its interest payments, highlighting the importance of monitoring this ratio closely in the future to assess the company's financial health and debt management.
Peer comparison
Dec 31, 2024