Shake Shack Inc (SHAK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 23, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 64.59 | 74.79 | 69.11 | 67.04 | 64.67 | 73.16 | 69.37 | 66.73 | 53.94 | 61.16 | 53.72 | 60.32 | 54.90 | 66.44 | 65.27 | 88.35 | 59.62 | 37.58 | 47.48 | 82.17 | |
| DSO | days | 5.65 | 4.88 | 5.28 | 5.44 | 5.64 | 4.99 | 5.26 | 5.47 | 6.77 | 5.97 | 6.79 | 6.05 | 6.65 | 5.49 | 5.59 | 4.13 | 6.12 | 9.71 | 7.69 | 4.44 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 64.59
= 5.65
The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments faster, which is generally favorable, as it improves cash flow and liquidity.
Analyzing Shake Shack Inc's DSO over the past several quarters, we observe fluctuations in the ratio. The DSO has ranged from a low of 4.13 days to a high of 9.71 days. The trend appears to be relatively stable with some fluctuations.
In the most recent period, DSO was 5.65 days as of December 31, 2023, showing a slight increase compared to the preceding quarters. This could indicate a minor slowdown in the company's accounts receivable collection efficiency.
Comparison with industry benchmarks and historical data would provide a more comprehensive understanding of Shake Shack Inc's DSO performance. It is essential to monitor DSO over time to ensure efficient management of accounts receivable and maintain healthy cash flow.
Peer comparison
Dec 31, 2023