Shake Shack Inc (SHAK)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,921 | 902 | -9,581 | -15,148 | -26,894 | -27,073 | -24,893 | -20,767 | -15,853 | -21,576 | -25,728 | -53,110 | -43,876 | -31,172 | -16,210 | 19,736 | 25,685 | 28,033 | 29,212 | 30,359 |
| Total assets | US$ in thousands | 1,605,860 | 1,581,940 | 1,549,900 | 1,524,000 | 1,511,950 | 1,515,970 | 1,480,080 | 1,449,730 | 1,457,570 | 1,440,300 | 1,432,270 | 1,407,590 | 1,145,350 | 1,137,200 | 1,123,940 | 1,040,010 | 968,268 | 963,272 | 898,244 | 846,968 |
| Operating ROA | 0.37% | 0.06% | -0.62% | -0.99% | -1.78% | -1.79% | -1.68% | -1.43% | -1.09% | -1.50% | -1.80% | -3.77% | -3.83% | -2.74% | -1.44% | 1.90% | 2.65% | 2.91% | 3.25% | 3.58% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,921K ÷ $1,605,860K
= 0.37%
The operating return on assets (ROA) for Shake Shack Inc has shown significant variability over the past several quarters. The trend indicates that the operating performance in generating profit from its assets has fluctuated. In the most recent quarter, as of December 31, 2023, the operating ROA stood at 0.37%, which represents a slight improvement compared to the previous periods, where it was negative.
The negative operating ROA values from March 31, 2021, to September 30, 2023, indicate that the company's operating income generated from its assets was insufficient to cover the total assets employed. This suggests operational inefficiencies or challenges in effectively utilizing the company's assets to generate profits during those periods.
However, the positive operating ROA values starting from December 31, 2019, suggest that Shake Shack Inc has been able to improve its operational performance and efficiency in generating income relative to its assets. The increasing trend from March 31, 2020, to March 31, 2022, followed by a slight decline, indicates a positive trajectory.
Overall, analyzing the operating ROA trend helps in assessing Shake Shack Inc's operational efficiency and profitability in generating income from its assets. It is essential for the company to sustain or improve this ratio in the future to ensure effective asset utilization and long-term profitability.
Peer comparison
Dec 31, 2023