Shake Shack (FRA:9SH) ROCE % : 0.55% (As of Dec. 2023)

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What is Shake Shack ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Shake Shack's annualized ROCE % for the quarter that ended in Dec. 2023 was 0.55%.

Shake Shack ROCE % Historical Data

The historical data trend for Shake Shack's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Shake Shack ROCE % Chart

Shake Shack Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.97

-4.50

-1.37

-1.74

1.31

Shake Shack Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															-1.11	-0.10	2.31	2.62	0.55

Shake Shack ROCE % Calculation

Shake Shack's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	17.145	/	( ( (1427.281 - 139.446)	+	(1472.571 - 150.449) )	/ 2 )
	=	17.145	/	( (1287.835	+	1322.122)	/ 2 )
	=	17.145	/	1304.9785
	=	1.31 %

Shake Shack's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	7.248	/	( ( (1466.27 - 142.59)	+	(1472.571 - 150.449) )	/ 2 )
	=	7.248	/	( ( 1323.68	+	1322.122 )	/ 2 )
	=	7.248	/	1322.901
	=	0.55 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Shake Shack (FRA:9SH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Shake Shack ROCE % Related Terms

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Shake Shack (FRA:9SH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Shake Shack Inc (FRA:9SH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SHAK:USA SHAK:Mexico 9SH:Germany

Address

225 Varick Street, Suite 301, New York, NY, USA, 10014

Website

https://www.shakeshack.com

Shake Shack Inc is a roadside burger stands. It is serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water.

Shake Shack (FRA:9SH) Headlines

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