Shake Shack Inc (SHAK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 17,971 | 12,461 | 815 | -7,051 | -20,891 | -23,263 | -22,610 | -19,150 | -14,302 | -20,817 | -24,626 | -49,781 | -41,286 | -27,363 | -13,817 | 18,221 | 23,647 | 25,045 | 25,570 | 25,850 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 4.05% | 2.87% | 0.19% | -1.71% | -5.07% | -5.57% | -5.61% | -4.78% | -3.49% | -4.99% | -5.90% | -12.03% | -10.14% | -6.55% | -3.28% | 6.07% | 7.91% | 8.62% | 10.03% | 10.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $17,971K ÷ ($—K + $443,417K)
= 4.05%
Shake Shack Inc's return on total capital has fluctuated over the past few quarters. In the most recent quarter, as of December 31, 2023, the return on total capital was 4.05%, showing an improvement compared to the previous quarters. This may indicate a more efficient use of capital to generate profits.
Looking back at the trend, the return on total capital has generally been negative in the previous quarters, with the lowest being -12.03% in March 2021. This suggests that the company has faced challenges in delivering returns on the total capital employed.
It is important for Shake Shack Inc to continue monitoring and improving its return on total capital to ensure the efficient utilization of resources and sustainable profitability in the long term.
Peer comparison
Dec 31, 2023