Shake Shack Inc (SHAK)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 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 | 2.11 | 1.12 | 0.88 | 1.04 | 1.10 | 1.17 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $334,432K ÷ $164,067K
= 2.04
The current ratio of Shake Shack Inc has exhibited fluctuating trends over the past few years. The company's current ratio, which measures its ability to cover short-term liabilities with current assets, has generally been above 1, indicating a strong liquidity position.
In the most recent quarter, the current ratio was 2.04, which implies that the company had $2.04 in current assets for every $1 in current liabilities. This ratio has been relatively stable, hovering above 2 since the beginning of 2023.
Looking back further, there was a notable increase in the current ratio from 2020 to mid-2022, reaching a peak of 3.67 in March 2022, indicating a significant improvement in liquidity during that period. However, the ratio declined thereafter but remained above 2, suggesting that the company's liquidity position remained healthy.
The decrease in current ratio in the last quarter of 2022 and the first quarter of 2023 to below 2 may warrant further investigation into the company's short-term liquidity management during those periods.
Overall, Shake Shack Inc's current ratio indicates that the company has maintained a solid ability to cover its short-term obligations with its current assets, although there have been fluctuations in the ratio over the past few years.
Peer comparison
Dec 31, 2023