Shake Shack Inc (SHAK)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 20,264 | 2,324 | -7,327 | -15,463 | -24,091 | -23,104 | -23,258 | -20,126 | -8,655 | -18,353 | -21,734 | -39,889 | -42,158 | -24,823 | -8,920 | 16,321 | 19,827 | 20,962 | 15,643 | 14,217 |
| Total stockholders’ equity | US$ in thousands | 443,417 | 433,442 | 423,359 | 412,506 | 412,204 | 417,700 | 402,765 | 400,415 | 409,537 | 416,862 | 417,073 | 413,933 | 407,321 | 417,692 | 421,578 | 300,418 | 298,817 | 290,616 | 255,020 | 236,439 |
| ROE | 4.57% | 0.54% | -1.73% | -3.75% | -5.84% | -5.53% | -5.77% | -5.03% | -2.11% | -4.40% | -5.21% | -9.64% | -10.35% | -5.94% | -2.12% | 5.43% | 6.64% | 7.21% | 6.13% | 6.01% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $20,264K ÷ $443,417K
= 4.57%
Shake Shack Inc's return on equity (ROE) has shown considerable variability over the past few quarters. The ROE, a key profitability ratio, indicates the company's ability to generate profits from shareholders' equity.
From the data provided, it is evident that Shake Shack Inc's ROE has been mostly negative in recent quarters, with the lowest ROE recorded at -10.35% in December 2020. This suggests that the company's profitability in relation to its equity base has been weak during these periods.
It is important to note the improvement in ROE in the most recent quarters, with a positive ROE of 4.57% in December 2023. This could indicate positive developments in the company's financial performance and operational efficiency.
Overall, Shake Shack Inc's ROE performance has been volatile, with periods of negative returns interspersed with some positive outcomes. Further analysis of the underlying factors driving these fluctuations would be necessary to provide a more comprehensive understanding of the company's financial health and future prospects.
Peer comparison
Dec 31, 2023