Shake Shack Inc (SHAK)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		112.85	127.52	124.03	112.57	107.39
DOH	days	3.23	2.86	2.94	3.24	3.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 112.85
= 3.23

Shake Shack Inc's days of inventory on hand (DOH) has shown a decreasing trend over the past five years, indicating improved management in inventory control. As of December 31, 2020, the company had 3.40 days of inventory on hand, which decreased to 2.86 days by December 31, 2023. The lowest DOH ratio was recorded on December 31, 2022, at 2.94 days. However, there was a slight increase in DOH to 3.23 days by December 31, 2024. Overall, this downward trend suggests that Shake Shack has been more efficient in managing its inventory levels, potentially leading to cost savings and improved liquidity.

Peer comparison

Dec 31, 2024

Company name

Symbol

DOH

Shake Shack Inc

SHAK

3.23

Starbucks Corporation