Shake Shack Inc (SHAK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 320,714 | 310,865 | 301,838 | 260,203 | 224,653 | 190,020 | 203,697 | 293,430 | 230,521 | 256,998 | 278,332 | 279,251 | 302,406 | 321,421 | 340,103 | 374,999 | 146,873 | 174,883 | 174,883 | 173,984 |
| Short-term investments | US$ in thousands | 0 | 0 | 2,574 | 24,570 | 68,561 | 94,957 | 91,537 | 80,707 | 80,707 | 80,015 | 79,625 | 79,676 | 80,000 | 80,082 | 80,105 | 40,914 | 36,887 | 16,879 | 16,879 | 16,833 |
| Total current liabilities | US$ in thousands | 187,313 | 175,833 | 168,088 | 161,083 | 164,062 | 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 | 104,266 | 96,673 |
| Cash ratio | 1.71 | 1.77 | 1.81 | 1.77 | 1.79 | 1.87 | 1.97 | 2.62 | 2.11 | 2.33 | 2.67 | 2.85 | 3.15 | 3.40 | 3.38 | 3.50 | 1.68 | 1.84 | 1.84 | 1.97 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($320,714K
+ $0K)
÷ $187,313K
= 1.71
The cash ratio for Shake Shack Inc has shown fluctuations over the past few years. The cash ratio is a liquidity ratio that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The data provided shows that the cash ratio has generally been above 1, indicating that Shake Shack Inc has had more than enough cash and cash equivalents to cover its short-term liabilities during the periods mentioned.
From June 30, 2020, to September 30, 2023, the cash ratio ranged from 1.97 to 3.50, indicating a strong liquidity position during these periods. The cash ratio peaked at 3.50 on March 31, 2021, and remained relatively high until September 30, 2023.
However, from December 31, 2023, to December 31, 2024, the cash ratio declined gradually from 1.79 to 1.71. This decrease could signify a potential tightening of liquidity or a shift in the company's cash management strategy during this period.
Overall, while the cash ratio has shown some fluctuations, Shake Shack Inc has generally maintained a healthy liquidity position, ensuring it has sufficient cash to meet its short-term obligations. It would be important for the company to continue monitoring its cash position to ensure it remains sufficient to cover its short-term liabilities.
Peer comparison
Dec 31, 2024