Shake Shack Inc (SHAK)

Days Sales Outstanding (DSO) is a key metric that indicates how quickly a company is able to collect its accounts receivable. A lower DSO generally suggests that a company is efficient in collecting payments from its customers, while a higher DSO may indicate potential issues with collections or credit terms.

Looking at Shake Shack Inc's DSO trend over the past five years, we can see that there has been some fluctuation. In 2023, the DSO was 5.66 days, which was slightly higher compared to the previous year at 5.64 days. This indicates that the company was able to collect its accounts receivable slightly slower in 2023.

In 2021, the DSO spiked to 6.77 days, which was notably higher than the preceding years. This could imply that Shake Shack Inc faced challenges in collecting payments from its customers during that period. However, in the following year, the DSO improved slightly to 6.74 days, which suggests some progress in the collection process.

In 2019, the DSO was at 6.12 days, showing a relatively lower number compared to 2021 and 2020. This could imply that the company was more efficient in collecting payments from customers during that year.

Overall, although there have been some fluctuations in Shake Shack Inc's DSO over the past five years, the metric has generally remained within a relatively stable range. It would be crucial for the company to closely monitor its DSO and continue to focus on optimizing its accounts receivable collection processes to ensure healthy cash flows and operational efficiency.

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Dec 31, 2023