Shake Shack Inc (SHAK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 159.27 | 203.72 | 179.96 | 161.70 | 132.23 | 126.90 | 135.66 | 155.36 | 157.01 | 160.48 | 140.24 | 122.41 | 112.57 | 115.39 | 102.93 | 114.88 | 98.35 | 114.69 | 118.57 | 133.46 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 66.80 | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 12.64 | — |
| Working capital turnover | 6.92 | 6.79 | 6.59 | 6.81 | 6.38 | 6.08 | 5.53 | 5.08 | 4.59 | 3.89 | 3.28 | 3.02 | 2.57 | 2.31 | 2.01 | 1.81 | 5.45 | 4.94 | 5.15 | 5.07 |
The inventory turnover ratio for Shake Shack Inc has shown a fluctuating trend over the analyzed period, starting at a high of 133.46 in June 2020, dipping to a low of 98.35 in December 2020, and then gradually increasing to 203.72 by September 2024. This indicates that the company has been effectively managing its inventory levels and turning over its inventory at a faster pace in recent periods.
On the other hand, the receivables turnover ratio was not available for most periods, suggesting that Shake Shack Inc may not rely heavily on credit sales or has efficient procedures in place for collecting receivables.
Similarly, the payables turnover ratio data was not provided for any period, making it challenging to assess how quickly the company is paying its suppliers.
The working capital turnover ratio has shown a generally increasing trend from 5.07 in June 2020 to 6.92 by December 2024. This indicates that Shake Shack Inc is utilizing its working capital more efficiently to generate sales revenue, reflecting positively on the company's operational performance and financial health.
In conclusion, while Shake Shack Inc demonstrates effective inventory management and working capital utilization based on the activity ratios analyzed, the absence of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall liquidity and efficiency in managing credit and payment terms.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.29 | 1.79 | 2.03 | 2.26 | 2.76 | 2.88 | 2.69 | 2.35 | 2.32 | 2.27 | 2.60 | 2.98 | 3.24 | 3.16 | 3.55 | 3.18 | 3.71 | 3.18 | 3.08 | 2.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 5.46 | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 28.88 | — |
Shake Shack Inc's Days of Inventory on Hand (DOH) has shown a decreasing trend from 2.73 days as of June 30, 2020, to 2.03 days as of June 30, 2024. This indicates that the company has been able to manage its inventory efficiently and has been selling its products quickly.
The Days of Sales Outstanding (DSO) data is limited, with information available only for September 23, 2020, showing 5.46 days. The absence of further DSO data makes it challenging to assess the company's efficiency in collecting its accounts receivable over time.
Regarding the Number of Days of Payables, the data for Shake Shack Inc is not available for most periods up to December 31, 2024. The lack of information on payables turnover makes it difficult to evaluate how long the company takes to pay its suppliers.
Overall, based on the available information, Shake Shack Inc has efficiently managed its inventory turnover, but a more comprehensive dataset would be needed to provide a complete analysis of its activity ratios.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 1.13 | 1.98 | 1.98 | 1.93 | 1.96 | 1.08 | 1.98 | 1.90 | 1.88 | 0.92 | 1.64 | 0.79 | 1.52 | 1.58 | 1.69 |
| Total asset turnover | 0.74 | 0.72 | 0.70 | 0.69 | 0.68 | 0.66 | 0.65 | 0.63 | 0.60 | 0.58 | 0.56 | 0.54 | 0.51 | 0.48 | 0.44 | 0.41 | 0.44 | 0.44 | 0.45 | 0.48 |
Shake Shack Inc's fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. From June 2020 to June 2023, the fixed asset turnover ratio experienced fluctuations, ranging from a low of 0.79 to a high of 1.98. Despite some fluctuations, the ratio generally remained above 1, indicating that Shake Shack was generating more revenue per dollar of fixed assets during these periods.
On the other hand, the total asset turnover ratio reflects Shake Shack's overall asset utilization efficiency. The ratio increased steadily from June 2020 to December 2024, starting at 0.48 and reaching 0.74. This upward trend suggests that the company was becoming more efficient in generating revenue from its total assets over time.
Overall, the analysis of Shake Shack Inc's long-term activity ratios reveals that the company improved its asset utilization efficiency, both in terms of fixed assets and total assets, over the analyzed periods.