Shake Shack Inc (SHAK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 173,984 | 87,806 | 37,099 | 44,505 | 29,733 | 31,897 |
| Short-term investments | US$ in thousands | 68,561 | 94,957 | 91,537 | 0 | 80,707 | 80,015 | 79,625 | 79,676 | 80,000 | 80,082 | 80,105 | 40,914 | 36,887 | 16,879 | 16,833 | 16,423 | 36,508 | 36,336 | 36,081 | 47,659 |
| 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 |
| Cash ratio | 1.79 | 1.87 | 1.97 | 2.05 | 2.11 | 2.33 | 2.67 | 2.85 | 3.15 | 3.40 | 3.38 | 3.50 | 1.68 | 1.84 | 1.97 | 1.01 | 0.74 | 0.84 | 0.83 | 1.00 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($224,653K
+ $68,561K)
÷ $164,067K
= 1.79
The cash ratio of Shake Shack Inc has shown a consistently increasing trend over the years, indicating a strong ability to cover its short-term liabilities with cash and cash equivalents. The ratio has generally remained above 1, suggesting that the company has more than enough liquid assets to meet its current obligations.
The ratio peaked at 3.50 in March 2021, reflecting a high level of liquidity at that time. However, there was a slight dip in the cash ratio in subsequent quarters before rebounding. This may indicate fluctuations in the company's cash holdings or changes in its operating activities during those periods.
Overall, the upward trend in the cash ratio is a positive sign of financial health, as it suggests that Shake Shack Inc has a solid liquidity position and can meet its short-term obligations without relying heavily on external financing.
Peer comparison
Dec 31, 2023