The Cheesecake Factory (CAKE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 108,566 | 38,935 | 82,318 | -347,437 | 103,598 |
| Interest expense | US$ in thousands | — | — | — | 800 | 600 |
| Interest coverage | — | — | — | -434.30 | 172.66 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $108,566K ÷ $—K
= —
The interest coverage ratio for The Cheesecake Factory has shown significant fluctuations over the past five years. In 2019, the ratio stood at 172.66, indicating a strong ability to cover interest expenses with operating profits. However, in 2020, the ratio plummeted to -434.30, which suggests that the company's operating profits were insufficient to cover its interest expenses during that year.
Unfortunately, the interest coverage data is not provided for the years 2021, 2022, and 2023, making it challenging to assess the current financial health of the company in terms of its ability to meet interest obligations. It is vital for investors and creditors to closely monitor the interest coverage ratio over time to ensure the company's sustainability and financial stability.
Peer comparison
Dec 31, 2023