Shake Shack Inc (SHAK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 556,706 | 406,744 | 322,797 | 240,994 | 412,325 |
| Inventory | US$ in thousands | 5,404 | 4,184 | 3,850 | 2,888 | 2,221 |
| Inventory turnover | 103.02 | 97.21 | 83.84 | 83.45 | 185.65 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $556,706K ÷ $5,404K
= 103.02
The inventory turnover for Shake Shack Inc has shown a fluctuating trend over the past five years.
Between December 31, 2019, and 2021, the inventory turnover ratio decreased from 185.65 to 83.84, indicating that the company's ability to turn over its inventory had slowed down significantly. However, in the following two years, from 2021 to 2023, there was an improvement in the inventory turnover ratio, which increased to 103.02, reflecting an enhancement in the efficiency of inventory management.
Overall, although there were fluctuations in the inventory turnover ratio, it is important to continue monitoring this ratio to ensure effective management of inventory levels and to optimize operational efficiency in the future.
Peer comparison
Dec 31, 2023