Shake Shack Inc (SHAK)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 10,207 | 8,720 | 26,558 | 23,838 | 20,264 | 1,970 | -7,681 | -15,817 | -25,565 | -24,224 | -24,378 | -21,246 | -8,655 | -18,353 | -21,734 | -29,237 | -46,757 | -28,289 | -24,823 | -8,920 |
| Total stockholders’ equity | US$ in thousands | 470,018 | 456,102 | 462,400 | 446,386 | 443,054 | 416,354 | 406,271 | 395,418 | 395,116 | 403,495 | 402,765 | 400,415 | 435,600 | 443,279 | 443,532 | 413,933 | 407,321 | 417,692 | 417,692 | 421,578 |
| ROE | 2.17% | 1.91% | 5.74% | 5.34% | 4.57% | 0.47% | -1.89% | -4.00% | -6.47% | -6.00% | -6.05% | -5.31% | -1.99% | -4.14% | -4.90% | -7.06% | -11.48% | -6.77% | -5.94% | -2.12% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $10,207K ÷ $470,018K
= 2.17%
Shake Shack Inc's return on equity (ROE) fluctuated over the period from June 30, 2020, to December 31, 2024. The ROE started with negative values, indicating that the company was not efficiently utilizing its shareholders' equity to generate profits. However, there was a gradual improvement in the ROE, turning positive by the end of December 31, 2023, and continuing to improve in the subsequent periods.
The negative ROE values in the earlier periods could suggest weaknesses in the company's profitability or inefficient management of its assets. A negative ROE indicates that the company is not generating sufficient profits relative to the shareholders' equity invested. On the other hand, the positive ROE values from December 31, 2023, onwards indicate that Shake Shack Inc started to generate returns that exceeded the shareholders' equity invested, reflecting improved profitability and efficiency.
Overall, the trend in Shake Shack Inc's ROE shows a turnaround from negative values to positive values, implying improved performance in generating profits relative to shareholders' equity. Monitoring this ratio is important for investors and stakeholders to assess the company's profitability and efficiency in utilizing its equity capital.
Peer comparison
Dec 31, 2024