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Cheesecake Factory (Cheesecake Factory) Interest Coverage : 27.47 (As of Mar. 2024)


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What is Cheesecake Factory Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Cheesecake Factory's Operating Income for the three months ended in Mar. 2024 was $48 Mil. Cheesecake Factory's Interest Expense for the three months ended in Mar. 2024 was $-2 Mil. Cheesecake Factory's interest coverage for the quarter that ended in Mar. 2024 was 27.47. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Cheesecake Factory's Interest Coverage or its related term are showing as below:

CAKE' s Interest Coverage Range Over the Past 10 Years
Min: 12.5   Med: 23.27   Max: 56.59
Current: 21.71


CAKE's Interest Coverage is ranked better than
75.09% of 265 companies
in the Restaurants industry
Industry Median: 7.07 vs CAKE: 21.71

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Cheesecake Factory Interest Coverage Historical Data

The historical data trend for Cheesecake Factory's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Cheesecake Factory Interest Coverage Chart

Cheesecake Factory Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.59 - 12.50 16.63 20.47

Cheesecake Factory Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.49 25.03 13.44 21.48 27.47

Competitive Comparison of Cheesecake Factory's Interest Coverage

For the Restaurants subindustry, Cheesecake Factory's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cheesecake Factory's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Cheesecake Factory's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cheesecake Factory's Interest Coverage falls into.



Cheesecake Factory Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cheesecake Factory's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Cheesecake Factory's Interest Expense was $-9 Mil. Its Operating Income was $175 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,725 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*175.095/-8.552
=20.47

Cheesecake Factory's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Cheesecake Factory's Interest Expense was $-2 Mil. Its Operating Income was $48 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,714 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*48.377/-1.761
=27.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Cheesecake Factory  (NAS:CAKE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Cheesecake Factory Interest Coverage Related Terms

Thank you for viewing the detailed overview of Cheesecake Factory's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheesecake Factory (Cheesecake Factory) Business Description

Traded in Other Exchanges
Address
26901 Malibu Hills Road, Calabasas Hills, CA, USA, 91301
Cheesecake Factory owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other baked products for sale in its restaurants, international licensees, and third-party bakery customers. The company has four operating business segments: The Cheesecake Factory restaurants, North Italia, other FRC, and Flower Child. Majority of the company's revenue comes from The Cheesecake Factory restaurants segment.
Executives
Ashley W Hanscom officer: PRINCIPAL ACCOUNTING OFFICER 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Adam S. Gordon director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Edie A Ames director C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
David Bruce Pittaway director 150 E 58TH ST, STE 3700, NEW YORK NY 10155
Khanh Collins director 22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
Matthew Eliot Clark officer: VP, Strategic Planning 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
David M Gordon officer: President C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Cheryl Slomann officer: Principal Accounting Officer 6450 VIA REAL, CURPINTERIA CA 93013
David Overton director, officer: Chairman and C.E.O.
Keith Carango officer: President (Subsidiary) 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Paul D. Ginsberg director C/O ROARK CAPITAL, 1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Rc Cake Holdings Llc 10 percent owner 1180 PEACHTREE STREET NE, SUITE 2500, ATLANTA GA 30309
Janice L. Meyer director 26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Laurence B Mindel director IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Alexander L Cappello director C/O THE CHEESECAKE FACTORY INC, 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301