Shake Shack Inc (SHAK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,696,970 | 1,605,860 | 1,494,860 | 1,457,570 | 1,145,350 |
| Total stockholders’ equity | US$ in thousands | 470,018 | 443,417 | 395,116 | 435,600 | 407,321 |
| Financial leverage ratio | 3.61 | 3.62 | 3.78 | 3.35 | 2.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,696,970K ÷ $470,018K
= 3.61
The financial leverage ratio of Shake Shack Inc has exhibited an upward trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 2.81 in 2020 to 3.61 in 2024. This indicates that the company's reliance on debt to finance its operations and growth has also increased during this period. The rising trend in the financial leverage ratio suggests that Shake Shack Inc has been taking on more debt relative to its equity, which may expose the company to higher financial risk. It is essential for stakeholders to closely monitor this ratio to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2024