Shake Shack Inc (SHAK)
Payables 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 |
| Payables | US$ in thousands | 22,273 | 20,407 | 19,947 | 23,487 | 14,300 |
| Payables turnover | 24.99 | 19.93 | 16.18 | 10.26 | 28.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $556,706K ÷ $22,273K
= 24.99
The payables turnover of Shake Shack Inc has shown a fluctuating trend over the past five years. The ratio was highest in 2019 at 28.83, indicating that the company was able to pay off its accounts payable almost 29 times during that year. However, in 2020, the payables turnover decreased significantly to 10.26, suggesting a potential delay in paying off suppliers compared to the previous year.
Subsequently, in 2021, the payables turnover improved to 16.18, demonstrating a better ability to manage and settle accounts payable. This upward trend continued in 2022, with a further increase to 19.93, indicating that the company was paying its suppliers more frequently.
The most recent data for 2023 shows a significant improvement in payables turnover to 24.99, suggesting that Shake Shack Inc has been more efficient in managing its accounts payable during that year. Overall, the increasing trend in payables turnover indicates a positive trend in the company's liquidity management and supplier relationship.
Peer comparison
Dec 31, 2023