Shake Shack Inc (SHAK)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,088,117 | 1,038,711 | 990,433 | 950,238 | 897,418 | 863,241 | 828,040 | 784,444 | 736,703 | 691,818 | 628,680 | 533,133 | 519,581 | 513,506 | 541,190 | 602,572 | 594,445 | 567,275 | 648,682 | 728,157 |
| Property, plant and equipment | US$ in thousands | 530,995 | 525,557 | 500,085 | 479,617 | 467,031 | 441,870 | 411,018 | 398,971 | 389,386 | 370,016 | 356,202 | 348,580 | 336,541 | 326,526 | 322,162 | 329,039 | 314,862 | 304,350 | 285,892 | 265,016 |
| Fixed asset turnover | 2.05 | 1.98 | 1.98 | 1.98 | 1.92 | 1.95 | 2.01 | 1.97 | 1.89 | 1.87 | 1.76 | 1.53 | 1.54 | 1.57 | 1.68 | 1.83 | 1.89 | 1.86 | 2.27 | 2.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,088,117K ÷ $530,995K
= 2.05
Shake Shack Inc's fixed asset turnover ratio has shown some fluctuations over the past few quarters. The ratio measures the efficiency with which the company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
From the data provided, we can see that Shake Shack's fixed asset turnover ratio has ranged from a low of 1.53 to a high of 2.75 over the past few years. The ratio has shown some volatility, with fluctuations seen from quarter to quarter. Overall, the trend in the fixed asset turnover ratio for Shake Shack Inc appears to have decreased slightly over the period in question.
It is important for the company to closely monitor and manage its fixed asset turnover ratio to ensure optimal utilization of its assets. The management should assess the reasons behind the fluctuations in the ratio and take necessary steps to improve efficiency in utilizing fixed assets to generate revenue. Additional analysis and comparison with industry benchmarks can provide further insights into the company's performance in this area.
Peer comparison
Dec 31, 2023