Shake Shack Inc (SHAK)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 368,216 | 354,016 | 345,680 | 326,189 | 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 | 204,510 | 204,076 |
| 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 |
| Current ratio | 1.97 | 2.01 | 2.06 | 2.02 | 2.04 | 2.12 | 2.19 | 2.31 | 2.33 | 2.54 | 2.89 | 3.07 | 3.37 | 3.54 | 3.52 | 3.67 | 1.85 | 1.96 | 1.96 | 2.11 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $368,216K ÷ $187,313K
= 1.97
The current ratio of Shake Shack Inc has shown a generally positive trend from June 30, 2020, to December 31, 2024, indicating the company's improving short-term liquidity position over time. The current ratio increased from 2.11 on June 30, 2020, to 3.07 on March 31, 2022, before experiencing a slight decline to 1.97 by December 31, 2024.
The current ratio remained above 2 throughout most of the period, suggesting that the company had more than enough current assets to cover its short-term liabilities. However, the decrease in the current ratio towards the end of the period may raise concerns about Shake Shack's ability to meet its short-term obligations using its current assets.
Overall, Shake Shack Inc's current ratio indicates that the company has been able to effectively manage its current assets and liabilities to maintain a healthy liquidity position, although monitoring the trend in the coming periods would be advisable to ensure ongoing financial stability.
Peer comparison
Dec 31, 2024