Shake Shack Inc (SHAK)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 2,045 | 2,009 | 1,944 | 1,822 | 1,717 | 1,614 | 1,656 | 1,566 | 1,518 | 1,498 | 1,373 | 1,417 | 1,577 | 1,342 | 1,135 | 919 | 846 | 840 | 829 | 819 |
| Interest coverage | 7.97 | 2.40 | 14.61 | 12.23 | 10.89 | -1.31 | -8.79 | -14.57 | -24.82 | -16.96 | -17.98 | -14.81 | -9.99 | -16.80 | -23.50 | -39.50 | -59.10 | -44.69 | -36.15 | -18.73 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $16,289K ÷ $2,045K
= 7.97
The interest coverage ratio reflects Shake Shack Inc's ability to meet its interest payments on debt obligations. Based on the provided data:
- Shake Shack Inc had negative interest coverage ratios from June 30, 2020, to December 31, 2023, indicating that the company did not generate enough operating income to cover its interest expenses during these periods.
- The interest coverage ratios gradually improved from negative values to positive territory starting from March 31, 2023, indicating a positive shift in the company's ability to cover its interest payments.
- As of December 31, 2024, the interest coverage ratio stood at 7.97, indicating that Shake Shack Inc's operating income was almost 8 times the amount needed to cover its interest expenses.
Overall, the trend in Shake Shack Inc's interest coverage ratio shows a gradual improvement from financial distress to a more stable position, reflecting a positive development in the company's financial health.
Peer comparison
Dec 31, 2024