Shake Shack Inc (SHAK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,085,860 | 897,418 | 736,703 | 512,280 | 594,193 |
| Property, plant and equipment | US$ in thousands | 530,995 | 467,031 | 389,386 | 336,541 | 314,862 |
| Fixed asset turnover | 2.04 | 1.92 | 1.89 | 1.52 | 1.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,085,860K ÷ $530,995K
= 2.04
The fixed asset turnover ratio for Shake Shack Inc has shown a fluctuating trend over the past five years. The company's ability to generate sales from its fixed assets has improved from 1.52 in 2020 to 2.04 in 2023, indicating that Shake Shack has become more efficient in utilizing its fixed assets to generate revenue. This increase suggests that the company has been able to increase its sales relative to its investment in property, plant, and equipment.
Although there was a slight dip in 2021, the overall trend shows an upward trajectory in fixed asset turnover, which is generally a positive sign of operational efficiency and effective asset utilization. This improvement may indicate better management of assets, increased productivity, or improved revenue generation strategies.
It is important for Shake Shack to continue monitoring and enhancing its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and to drive sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2023