Shake Shack Inc (SHAK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 224,653 | 230,521 | 302,406 | 146,873 | 37,099 |
| Short-term investments | US$ in thousands | 68,561 | 80,707 | 80,000 | 36,887 | 36,508 |
| Receivables | US$ in thousands | 16,847 | 13,877 | 13,657 | 9,464 | 9,970 |
| Total current liabilities | US$ in thousands | 164,067 | 147,718 | 121,497 | 109,705 | 99,392 |
| Quick ratio | 1.89 | 2.20 | 3.26 | 1.76 | 0.84 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($224,653K
+ $68,561K
+ $16,847K)
÷ $164,067K
= 1.89
The quick ratio of Shake Shack Inc has shown varying trends over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2023, the quick ratio stood at 1.89, showing a slight decline from the previous year but still indicating that Shake Shack Inc has sufficient liquid assets to meet its short-term obligations.
In 2022, the company's quick ratio was 2.20, demonstrating an even stronger ability to cover its current liabilities with liquid assets compared to 2023.
In 2021, the quick ratio was substantially higher at 3.26, suggesting a significant improvement in Shake Shack Inc's liquidity position and ability to meet short-term obligations.
In 2020, the quick ratio decreased to 1.76, indicating a slight decrease in liquidity compared to 2021 but still above the threshold of 1.
In 2019, the quick ratio was at 0.84, indicating that Shake Shack Inc had insufficient liquid assets to cover its short-term liabilities.
Overall, while the quick ratio has fluctuated over the years, Shake Shack Inc has generally maintained a healthy liquidity position, with the ratio consistently above 1 in recent years, reflecting the company's ability to manage its short-term financial obligations with its liquid assets.
Peer comparison
Dec 31, 2023