Fin 3332 Research Paper
FIN 3332-XTID-T4-2013
Research Project
1. When I reviewed the capital structure charts for the four companies, Cheesecake Factory, Chipotle, Ruby Tuesday, and O’Charley’s, I noticed that Ruby Tuesday and O’Charley’s had more total debt than the other two and were consistent with each other in relationship to equity and liabilities. Both of these organizations capital structures also seem to fluctuate with increases and decreases in the same years.
Chipotle and Cheesecake Factory both have very low levels of debt while O’Charley’s debt is moderate in proportion to its equity and liabilities. Ruby Tuesday however has a high level of debt.
Ruby Tuesday and O’Charley’s both have a proportionate level of current liabilities in comparison to their overall capital structure and O’Charley’s current liabilities have been steadily decreasing. Cheesecake Factories liabilities have steadily risen over the 12 year period and are high in the current year. Chipotle is the only company of these four with a low level of liabilities.
Ruby Tuesday, Chipotle, and O’Charley’s capital structure has mostly remained the same through-out the 12 year reporting period. The one exception is that in the current year O’Charley’s has completely eliminated debt from its capital structure. The Cheesecake Factory had to change its capital structure in the 2007-2009 timeframe, adding debt to the overall structure, but has returned to its pre-2007 capital structure of no debt.
2.
None of the four companies ratios suggest that they have had any significant changed to capital structure over the past five years. The ratios are similar in each year with slight
Research Project
1. When I reviewed the capital structure charts for the four companies, Cheesecake Factory, Chipotle, Ruby Tuesday, and O’Charley’s, I noticed that Ruby Tuesday and O’Charley’s had more total debt than the other two and were consistent with each other in relationship to equity and liabilities. Both of these organizations capital structures also seem to fluctuate with increases and decreases in the same years.
Chipotle and Cheesecake Factory both have very low levels of debt while O’Charley’s debt is moderate in proportion to its equity and liabilities. Ruby Tuesday however has a high level of debt.
Ruby Tuesday and O’Charley’s both have a proportionate level of current liabilities in comparison to their overall capital structure and O’Charley’s current liabilities have been steadily decreasing. Cheesecake Factories liabilities have steadily risen over the 12 year period and are high in the current year. Chipotle is the only company of these four with a low level of liabilities.
Ruby Tuesday, Chipotle, and O’Charley’s capital structure has mostly remained the same through-out the 12 year reporting period. The one exception is that in the current year O’Charley’s has completely eliminated debt from its capital structure. The Cheesecake Factory had to change its capital structure in the 2007-2009 timeframe, adding debt to the overall structure, but has returned to its pre-2007 capital structure of no debt.
2.
None of the four companies ratios suggest that they have had any significant changed to capital structure over the past five years. The ratios are similar in each year with slight