Shake Shack Inc (SHAK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,085,860 | 897,418 | 736,703 | 512,280 | 594,193 |
| Receivables | US$ in thousands | 16,847 | 13,877 | 13,657 | 9,464 | 9,970 |
| Receivables turnover | 64.45 | 64.67 | 53.94 | 54.13 | 59.60 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,085,860K ÷ $16,847K
= 64.45
The receivables turnover ratio for Shake Shack Inc has shown a relatively stable trend over the past five years. The company's ability to convert its accounts receivable into cash has been consistently high, with values ranging from 53.94 to 64.67 times per year.
A higher receivables turnover ratio indicates that Shake Shack is efficient in collecting payments from its customers, leading to a shorter cash conversion cycle. This can be a positive sign of strong customer credit policies and effective accounts receivable management.
Overall, Shake Shack Inc's consistent and relatively high receivables turnover ratios suggest that the company's receivables management practices are effective and efficient, potentially resulting in improved cash flows and liquidity.
Peer comparison
Dec 31, 2023