Shake Shack Inc (SHAK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 16,289 | 4,814 | 28,396 | 22,289 | 18,697 | -2,111 | -14,553 | -22,809 | -37,681 | -25,404 | -24,688 | -20,992 | -15,758 | -22,540 | -26,676 | -36,304 | -49,995 | -37,538 | -29,965 | -15,340 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 3.47% | 1.06% | 6.14% | 4.99% | 4.22% | -0.51% | -3.58% | -5.77% | -9.54% | -6.30% | -6.13% | -5.24% | -3.62% | -5.08% | -6.01% | -8.77% | -12.27% | -8.99% | -7.17% | -3.64% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $16,289K ÷ ($—K + $470,018K)
= 3.47%
Shake Shack Inc's return on total capital has shown fluctuations over the analyzed period. Starting from a negative value of -3.64% in June 2020, the company experienced a decline in its return on total capital, reaching a low of -12.27% in December 2020. The trend continued to be negative until the end of March 2023, with the return on total capital hovering around -6% to -3%.
However, the company's performance started to improve in the following periods, with a positive turn occurring in the last quarter of 2023. From that point on, Shake Shack Inc demonstrated a steady increase in its return on total capital, reaching 6.14% by June 2024. Despite a minor decrease to 1.06% in September 2024, the company managed to maintain an upward trajectory, ending the analyzed period with a return on total capital of 3.47% in December 2024.
Overall, Shake Shack Inc's return on total capital exhibited a recovery from negative values to positive figures, showcasing an improvement in the company's capital efficiency and potentially its overall financial performance.
Peer comparison
Dec 31, 2024