Shake Shack Inc (SHAK)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 556,706 | 453,759 | 435,756 | 421,363 | 406,744 | 383,216 | 370,502 | 347,911 | 322,797 | 305,012 | 277,865 | 249,221 | 240,994 | 274,204 | 326,866 | 382,237 | 411,991 | 391,218 | 364,010 | 337,771 |
| Inventory | US$ in thousands | 5,404 | 4,608 | 4,674 | 4,394 | 4,184 | 3,996 | 3,955 | 3,780 | 3,850 | 3,525 | 3,560 | 2,734 | 2,888 | 2,383 | 2,346 | 2,045 | 2,221 | 1,782 | 1,692 | 1,626 |
| Inventory turnover | 103.02 | 98.47 | 93.23 | 95.90 | 97.21 | 95.90 | 93.68 | 92.04 | 83.84 | 86.53 | 78.05 | 91.16 | 83.45 | 115.07 | 139.33 | 186.91 | 185.50 | 219.54 | 215.14 | 207.73 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $556,706K ÷ $5,404K
= 103.02
The inventory turnover ratio for Shake Shack Inc has shown fluctuations over the past five years and is an indication of how efficiently the company is managing its inventory.
The inventory turnover ratio measures how many times a company sells and replaces its inventory within a given period. A higher inventory turnover ratio typically indicates that the company is effectively selling its products and managing its inventory levels, while a lower ratio may suggest overstocking or slow-moving inventory.
Based on the data provided, Shake Shack Inc's inventory turnover has ranged from a low of 78.05 to a high of 219.54 over the past five years. The company's inventory turnover peaked in the first quarter of 2019 at 219.54, indicating efficient management of its inventory. However, the ratio has since fluctuated, showing a downward trend in recent quarters.
Overall, the company's inventory turnover has remained relatively high, indicating that Shake Shack Inc has been effectively managing its inventory levels and selling its products efficiently. However, the fluctuations in the ratio suggest potential changes in inventory management strategies that could impact the company's operations and profitability in the future. Tracking this ratio over time can help assess the company's performance and efficiency in inventory management.
Peer comparison
Dec 31, 2023
Dec 31, 2023