Shake Shack Inc (SHAK)
Working capital 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 |
| Total current assets | US$ in thousands | 334,432 | 323,236 | 329,518 | 330,074 | 343,988 | 367,055 | 387,575 | 386,617 | 409,676 | 419,180 | 438,161 | 435,290 | 203,186 | 204,510 | 204,076 | 115,410 | 87,675 | 99,440 | 86,865 | 92,356 |
| Total current liabilities | US$ in thousands | 164,067 | 152,177 | 150,185 | 143,052 | 147,718 | 144,542 | 133,909 | 125,961 | 121,497 | 118,259 | 124,491 | 118,749 | 109,705 | 104,266 | 96,673 | 102,828 | 99,392 | 95,971 | 79,012 | 79,177 |
| Working capital turnover | 6.39 | 6.07 | 5.52 | 5.08 | 4.57 | 3.88 | 3.26 | 3.01 | 2.56 | 2.30 | 2.00 | 1.68 | 5.56 | 5.12 | 5.04 | 47.89 | — | 163.53 | 82.60 | 55.25 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,088,117K ÷ ($334,432K – $164,067K)
= 6.39
The working capital turnover ratio for Shake Shack Inc has varied over the periods presented, indicating the efficiency with which the company is utilizing its working capital to generate sales revenue.
The trend shows an improvement in the working capital turnover ratio from 1.68 in March 2021 to 6.39 in December 2023, suggesting that the company has become more effective in managing its working capital in recent periods.
The significant increase in the ratio from 47.89 in March 2020 to 163.53 in September 2019 indicates an extremely high turnover of working capital during those periods. This could imply rapid sales growth or efficient management of its current assets and liabilities.
Overall, a higher working capital turnover ratio signifies that Shake Shack Inc is efficiently utilizing its working capital to generate sales, which is a positive indicator of operational performance and financial health.
Peer comparison
Dec 31, 2023