Shake Shack Inc (SHAK)
Quick 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 | 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 |
| Receivables | US$ in thousands | 16,847 | 13,889 | 14,332 | 14,175 | 13,877 | 11,800 | 11,936 | 11,755 | 13,657 | 11,311 | 11,703 | 8,838 | 9,464 | 7,729 | 8,291 | 6,820 | 9,970 | 15,094 | 13,661 | 8,862 |
| 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 |
| Quick ratio | 1.89 | 1.96 | 2.06 | 2.15 | 2.20 | 2.41 | 2.76 | 2.94 | 3.26 | 3.49 | 3.47 | 3.58 | 1.76 | 1.91 | 2.06 | 1.08 | 0.84 | 1.00 | 1.01 | 1.12 |
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 a generally positive trend over the past few quarters. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.
From December 2019 to March 2020, there was a significant decline in the quick ratio, which may have indicated a potential liquidity concern during that period. However, starting from June 2020, the quick ratio began to improve steadily, reaching its peak at 3.58 in March 2021, reflecting a strong ability to cover short-term obligations with liquid assets.
Throughout 2021 and the first half of 2022, the quick ratio remained consistently high, indicating a robust liquidity position for Shake Shack Inc. However, there was a slight decrease in the quick ratio in the latter half of 2022 and the beginning of 2023, although it remained above 2.0, suggesting that the company still had a strong ability to cover short-term liabilities.
Overall, Shake Shack Inc's quick ratio has demonstrated a healthy liquidity position, with the ability to easily cover its short-term obligations with liquid assets. The fluctuations observed in the quick ratio should be further investigated to understand the underlying factors affecting the company's liquidity management.
Peer comparison
Dec 31, 2023