Shake Shack Inc (SHAK)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 24.99 | 19.93 | 16.18 | 10.26 | 28.83 | |
| Number of days of payables | days | 14.60 | 18.31 | 22.55 | 35.57 | 12.66 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 24.99
= 14.60
Shake Shack Inc's number of days of payables has shown a varying trend over the past five years. In 2023, the company had 14.60 days of payables, indicating that on average, it takes approximately 14.60 days for Shake Shack to pay its suppliers. This is a decrease from the previous year, where the number of days of payables was 18.31 days.
The decrease in the number of days of payables from 2022 to 2023 suggests that Shake Shack managed its payables more efficiently in 2023, potentially negotiating better payment terms with suppliers or improving its cash management practices.
Comparing the current year to earlier years, it is evident that Shake Shack's payables turnover has improved significantly from 35.57 days in 2020 to 14.60 days in 2023. This trend indicates that the company has become more effective in managing its payables over time, potentially enhancing its working capital management and overall financial health.
Peer comparison
Dec 31, 2023