Shake Shack Inc (SHAK)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,088,117 | 1,038,711 | 990,433 | 950,238 | 897,418 | 863,241 | 828,040 | 784,444 | 736,703 | 691,818 | 628,680 | 533,133 | 519,581 | 513,506 | 541,190 | 602,572 | 594,445 | 567,275 | 648,682 | 728,157 |
| Receivables | US$ in thousands | 16,847 | 13,889 | 14,332 | 14,175 | 13,877 | 11,800 | 11,936 | 11,755 | 13,657 | 11,311 | 11,703 | 8,838 | 9,464 | 7,729 | 8,291 | 6,820 | 9,970 | 15,094 | 13,661 | 8,862 |
| Receivables turnover | 64.59 | 74.79 | 69.11 | 67.04 | 64.67 | 73.16 | 69.37 | 66.73 | 53.94 | 61.16 | 53.72 | 60.32 | 54.90 | 66.44 | 65.27 | 88.35 | 59.62 | 37.58 | 47.48 | 82.17 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,088,117K ÷ $16,847K
= 64.59
The receivables turnover ratio for Shake Shack Inc has shown fluctuations over the periods under consideration. The ratio indicates how efficiently the company is able to collect outstanding receivables from customers during a specific period.
From the data provided, we observe that the receivables turnover has generally been in the range of 50 to 70 times annually, with some periods showing higher values exceeding 70. This suggests that Shake Shack Inc has been efficient in converting its accounts receivable into cash over the years, which is a positive indicator of the company's ability to manage its credit policies effectively and collect payments promptly.
It is important to note that a higher receivables turnover ratio reflects a shorter collection period and is generally preferred as it indicates that the company is collecting payments quickly. However, it is also important to consider the nature of the industry and business model, as different factors can influence the optimal receivables turnover ratio for a particular company.
Overall, based on the trend in the receivables turnover ratios observed for Shake Shack Inc, the company appears to have maintained a relatively healthy level of efficiency in managing its accounts receivable and collecting payments from customers in a timely manner over the periods analyzed.
Peer comparison
Dec 31, 2023