Shake Shack Inc (SHAK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,264 | -21,229 | -8,655 | -42,158 | 19,827 |
| Total assets | US$ in thousands | 1,605,860 | 1,511,950 | 1,457,570 | 1,145,350 | 968,268 |
| ROA | 1.26% | -1.40% | -0.59% | -3.68% | 2.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $20,264K ÷ $1,605,860K
= 1.26%
Shake Shack Inc's return on assets (ROA) has fluctuated over the past five years. In 2019, the company achieved a relatively high ROA of 2.05%, indicating efficient utilization of assets to generate profits. However, this was followed by a significant decrease in 2020, with ROA dropping to -3.68%, reflecting a period of decreased profitability relative to its assets.
The trend reversed in 2021, where the ROA improved to -0.59%, though still negative, suggesting ongoing challenges in generating profits from assets. In 2022, the negative trend continued as the ROA further decreased to -1.40%, indicating continued struggles in asset efficiency.
However, there was a positive turn in the most recent year, 2023, with a ROA of 1.26%, showing a return to positive territory and a potential improvement in the company's ability to generate profits from its assets compared to the previous year.
Overall, the varying trend in ROA over the years suggests Shake Shack Inc has experienced fluctuations in asset efficiency and profitability, indicating the company's performance in utilizing its assets to generate returns has been inconsistent and may require further monitoring and analysis.
Peer comparison
Dec 31, 2023