Shake Shack Inc (SHAK)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,252,608 | 1,210,167 | 1,169,450 | 1,124,759 | 1,087,533 | 1,039,819 | 991,426 | 950,373 | 900,486 | 865,213 | 831,294 | 788,002 | 739,893 | 694,147 | 630,653 | 573,083 | 509,587 | 495,247 | 516,281 | 544,153 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 923,427 | 500,085 | 479,617 | 467,031 | 441,870 | 772,540 | 398,971 | 389,386 | 370,016 | 682,946 | 348,580 | 642,858 | 326,526 | 326,526 | 322,162 |
| Fixed asset turnover | — | — | — | — | — | 1.13 | 1.98 | 1.98 | 1.93 | 1.96 | 1.08 | 1.98 | 1.90 | 1.88 | 0.92 | 1.64 | 0.79 | 1.52 | 1.58 | 1.69 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,252,608K ÷ $—K
= —
The fixed asset turnover ratio measures the efficiency of Shake Shack Inc in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more effectively to generate revenue.
Based on the provided data, Shake Shack Inc's fixed asset turnover ratio fluctuated over the period from June 30, 2020, to September 30, 2024. The ratio ranged from a low of 0.79 on December 31, 2020, to a high of 1.98 multiple times, such as on March 31, 2022, March 31, 2023, and June 30, 2023.
The trend in the fixed asset turnover ratio shows varying levels of efficiency in utilizing fixed assets to generate sales revenue. For instance, the ratio increased significantly from 0.92 on June 30, 2021, to 1.88 on September 30, 2021, and continued to rise to 1.98 by March 31, 2022, indicating improved asset utilization during that period. However, it dropped to 1.08 on June 30, 2022, before reaching another peak at 1.98 by March 31, 2023.
The most recent data points show a fixed asset turnover ratio of 1.98 as of March 31, 2023, and it remained constant at that level through June 30, 2023. This consistent ratio suggests the company's sustained efficiency in generating revenue from its fixed assets during that period.
Overall, the analysis of Shake Shack Inc's fixed asset turnover indicates fluctuations in efficiency in utilizing fixed assets to generate sales revenue over time. Further monitoring of this ratio will be essential to assess the company's ongoing asset management effectiveness.
Peer comparison
Dec 31, 2024