Shake Shack Inc (SHAK)
Total asset 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 |
| Total assets | US$ in thousands | 1,605,860 | 1,511,950 | 1,457,570 | 1,145,350 | 968,268 |
| Total asset turnover | 0.68 | 0.59 | 0.51 | 0.45 | 0.61 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,085,860K ÷ $1,605,860K
= 0.68
The total asset turnover ratio of Shake Shack Inc has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its total assets to generate revenue.
In 2023, the total asset turnover ratio improved to 0.68 from 0.59 in 2022, suggesting that the company was able to generate more revenue per dollar of assets invested. This increase signifies an enhancement in the company's efficiency in utilizing its assets to drive sales.
Comparing the total asset turnover ratio in 2023 to prior years, it is evident that the company's performance in asset utilization has been variable. In 2021 and 2020, the total asset turnover ratio was lower at 0.51 and 0.45, respectively, indicating less efficient use of assets to generate sales during those years.
However, it is worth noting that in 2019, the total asset turnover ratio was relatively higher at 0.61 compared to 2021 and 2020. The increase in 2023 signifies an improvement in efficiency since 2019.
Overall, the increasing trend in the total asset turnover ratio from 2020 to 2023 demonstrates Shake Shack Inc's efforts to enhance its asset efficiency and optimize revenue generation. Continued monitoring and analysis of this ratio will provide insights into the company's ongoing operational efficiency and financial performance.
Peer comparison
Dec 31, 2023