Shake Shack Inc (SHAK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.61 | 3.67 | 3.59 | 3.63 | 3.62 | 3.76 | 3.77 | 3.81 | 3.78 | 3.72 | 3.67 | 3.62 | 3.35 | 3.25 | 3.23 | 3.40 | 2.81 | 2.72 | 2.72 | 2.67 |
Shake Shack Inc's solvency ratios reflect a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been constant at 0.00% across multiple reporting periods, indicating that the company operates with minimal debt levels compared to its financial resources.
Additionally, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown stability over time. The ratio has ranged from 2.67 to 3.81, with a slight fluctuation but overall remaining at moderate levels. This suggests that Shake Shack Inc has been able to manage its debt effectively without incurring significant financial risk.
Overall, based on these solvency ratios, Shake Shack Inc demonstrates a healthy solvency position with a conservative approach to debt management, which bodes well for its long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Shake Shack Inc has shown a consistent improvement over the period from June 30, 2020, to December 31, 2024. The ratio started at a negative figure of -18.73 on June 30, 2020, indicating that the company was unable to cover its interest expenses with its earnings. However, Shake Shack Inc steadily improved its interest coverage, with the ratio steadily increasing quarter by quarter. By December 31, 2023, the interest coverage ratio turned positive at 10.89, showing that the company's earnings were more than sufficient to cover its interest payments. This positive trend continued through March 31, 2024, and June 30, 2024, with the interest coverage ratio reaching 14.61 and 7.97, respectively. Overall, the improving trend in the interest coverage ratio indicates that Shake Shack Inc has been better able to meet its interest obligations with its operating income, reflecting improved financial health and potential for sustainable growth.