Cheesecake Factory (NAS:CAKE) Asset Turnover

: 0.31 (As of Mar. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Cheesecake Factory's Revenue for the three months ended in Mar. 2023 was $866 Mil. Cheesecake Factory's Total Assets for the quarter that ended in Mar. 2023 was $2,759 Mil. Therefore, Cheesecake Factory's Asset Turnover for the quarter that ended in Mar. 2023 was 0.31.

Asset Turnover is linked to ROE % through Du Pont Formula. Cheesecake Factory's annualized ROE % for the quarter that ended in Mar. 2023 was 37.92%. It is also linked to ROA % through Du Pont Formula. Cheesecake Factory's annualized ROA % for the quarter that ended in Mar. 2023 was 4.07%.

Cheesecake Factory Asset Turnover Historical Data

The historical data trend for Cheesecake Factory's Asset Turnover 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.

* Premium members only.

Cheesecake Factory Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Asset Turnover

1.76

1.20

0.71

1.06

1.19

Cheesecake Factory Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Asset Turnover																0.29	0.30	0.29	0.32	0.31

Competitive Comparison

For the Restaurants subindustry, Cheesecake Factory's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.

Annual Data Quarterly Data

Cheesecake Factory Asset Turnover Distribution

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

* The bar in red indicates where Cheesecake Factory's Asset Turnover falls in comparison to its industry or sector. The grey bar indicates the Asset Turnover's extreme value range as defined by GuruFocus.

Cheesecake Factory Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Cheesecake Factory's Asset Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
=	3303.156	/	( (2798.125	+	2775.22)	/ 2 )
=	3303.156	/	2786.6725
=	1.19

Cheesecake Factory's Asset Turnover for the quarter that ended in Mar. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2023 )	/	( (Total Assets (Q: Dec. 2022 )	+	Total Assets (Q: Mar. 2023 ))	/ count )
=	866.114	/	( (2775.22	+	2742.488)	/ 2 )
=	866.114	/	2758.854
=	0.31

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Cheesecake Factory (NAS:CAKE) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Cheesecake Factory's annulized ROE % for the quarter that ended in Mar. 2023 is

	ROE %^**		(Q: Mar. 2023 )
=	Net Income	/	Total Stockholders Equity
=	112.2	/	295.921
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(112.2 / 3464.456)	*	(3464.456 / 2758.854)	*	(2758.854/ 295.921)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	3.24 %	*	1.2558	*	9.3229
=	ROA %	*	Equity Multiplier
=	4.07 %	*	9.3229
=	37.92 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Cheesecake Factory's annulized ROA % for the quarter that ended in Mar. 2023 is

	ROA %		(Q: Mar. 2023 )
=	Net Income	/	Total Assets
=	112.2	/	2758.854
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(112.2 / 3464.456)	*	(3464.456 / 2758.854)
=	Net Margin %	*	Asset Turnover
=	3.24 %	*	1.2558
=	4.07 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Cheesecake Factory Asset Turnover Related Terms

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Cheesecake Factory (NAS:CAKE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Cheesecake Factory Inc (NAS:CAKE) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

CAKE:Mexico CF2:Germany

Address

26901 Malibu Hills Road, Calabasas Hills, CA, USA, 91301

Website

https://www.thecheesecakefactory.com

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. Most of the company's revenue comes from The Cheesecake Factory restaurants segment.

Executives

Adam S. Gordon	director	26901 MALIBU HILLS ROAD, CALABASAS CA 91301
Khanh Collins	director	22825 QUEENSBRIDGE DRIVE, ASHBURN VA 20148
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
Scarlett May	officer: EVP, General Counsel	26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Keith Carango	officer: President (Subsidiary)	26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Edie A Ames	director	C/O MORTONS RESTATURANT GROUP, INC., 325 LASALLE STREET, SUITE 500, CHICAGO IL 60610
Doug Benn	officer: Executive VP, CFO	C/O INNOVATIVE RESTAURANTS CONCEPT INC, 1640 POWERS FERRY RD BLDG 2 STE 300, MARIETTA GA 30067-9400
David M Gordon	officer: President	C/O THE CHEESECAKE FACTORY INCORPORATED, 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
Douglas L Schmick	director	720 SW WASHINGTON STREET, SUITE 550, PORTLAND OR 97205
Laurence B Mindel	director	IL FORNAIO AMERICA CORP, 770 TAMAPAIS DR STE 400, CORTE MADERA CA 94925
Herbert Simon	director	115 W WASHINGTON ST, INDIANAPOLIS IN 46204
Michael E Jannini	officer: President	C/O 26901 MALIBU HILLS DRIVE, CALABASAS HILLS CA 91301
David Bruce Pittaway	director	150 E 58TH ST, STE 3700, NEW YORK NY 10155