Shake Shack Inc (SHAK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,207 | 20,264 | -25,967 | -10,111 | -45,534 |
| Total stockholders’ equity | US$ in thousands | 470,018 | 443,417 | 395,116 | 435,600 | 407,321 |
| ROE | 2.17% | 4.57% | -6.57% | -2.32% | -11.18% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $10,207K ÷ $470,018K
= 2.17%
Shake Shack Inc's return on equity (ROE) has shown a fluctuating trend over the years based on the provided data. In December 2020, the ROE was -11.18%, indicating that the company had a negative return relative to its shareholders' equity. This negative figure improved to -2.32% by December 2021, but remained unfavorable.
By December 2022, the ROE decreased slightly to -6.57%, still indicating a suboptimal performance in generating returns from shareholders' equity. However, there was a notable improvement by December 2023, with the ROE turning positive at 4.57%. This suggests that the company started to generate a net profit relative to its equity, which can be seen as a positive development.
In the most recent period reported, December 2024, the ROE further increased to 2.17%. While this was a positive improvement compared to the earlier negative figures, the ROE remained relatively low, indicating that the company may still have room for enhancing its profitability in relation to shareholders' equity.
Overall, Shake Shack Inc's performance in terms of ROE has shown some variability, with recent improvements indicating a potential turnaround in profitability. Further analysis and monitoring of the ROE trend will be necessary to assess the company's efficiency in utilizing equity to generate returns for shareholders.
Peer comparison
Dec 31, 2024