Shake Shack Inc (SHAK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.73% | 54.68% | 56.18% | 52.96% | 30.61% |
| Operating profit margin | 0.55% | -3.00% | -2.15% | -8.56% | 4.32% |
| Pretax margin | 1.50% | -2.50% | -2.16% | -8.22% | 3.91% |
| Net profit margin | 1.87% | -2.37% | -1.17% | -8.23% | 3.34% |
Shake Shack Inc's profitability ratios reflect fluctuations over the past five years. The gross profit margin has ranged from 30.61% in 2019 to 56.18% in 2021, indicating varying levels of efficiency in generating revenue after accounting for production costs.
However, the operating profit margin has been volatile, ranging from -8.56% in 2020 to 4.32% in 2019, suggesting inconsistent operational efficiency in managing expenses. The pretax margin also shows variability, with values between -8.22% in 2020 and 3.91% in 2019, indicating fluctuations in profitability before tax.
On the other hand, the net profit margin has shown a similar trend, with values varying from -8.23% in 2020 to 3.34% in 2019, illustrating the company's ability to translate revenue into profit after accounting for all expenses. Overall, Shake Shack Inc's profitability ratios highlight the need for consistent cost management and revenue optimization strategies to improve overall financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.37% | -1.78% | -1.09% | -3.83% | 2.65% |
| Return on assets (ROA) | 1.26% | -1.40% | -0.59% | -3.68% | 2.05% |
| Return on total capital | 4.05% | -5.07% | -3.49% | -10.14% | 7.91% |
| Return on equity (ROE) | 4.57% | -5.15% | -2.11% | -10.35% | 6.64% |
Shake Shack Inc's profitability ratios have shown fluctuating performance over the past five years. The Operating return on assets (Operating ROA) has improved steadily from negative figures in 2020 and 2021 to a positive 0.37% in 2023. This indicates the company's ability to generate profits from its assets through core operating activities.
The Return on assets (ROA) metric also improved in 2023, reaching 1.26% from negative values in the previous two years. This suggests that the company is becoming more efficient in utilizing its assets to generate profits.
Furthermore, Return on total capital has shown a significant improvement in 2023, standing at 4.05% compared to negative figures in the preceding years. This indicates that the company is generating higher returns on the total capital employed in its operations.
Return on equity (ROE) has also displayed an upward trend in 2023, reaching 4.57%. This suggests that Shake Shack Inc is generating a positive return for its shareholders' equity.
Overall, the upward trend in profitability ratios indicates an improvement in Shake Shack Inc's financial performance and efficiency in generating profits from its assets and capital.