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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Shake Shack's current ratio for the quarter that ended in Dec. 2023 was 2.04.
Shake Shack has a current ratio of 2.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for Shake Shack's Current Ratio or its related term are showing as below:
During the past 12 years, Shake Shack's highest Current Ratio was 3.37. The lowest was 0.16. And the median was 2.19.
The historical data trend for Shake Shack's Current Ratio 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.
Shake Shack Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Current Ratio | Get a 7-Day Free Trial | 0.88 | 1.85 | 3.37 | 2.33 | 2.04 |
Shake Shack Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Current Ratio | Get a 7-Day Free Trial | 2.33 | 2.31 | 2.19 | 2.12 | 2.04 |
For the Restaurants subindustry, Shake Shack's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shake Shack's Current Ratio falls into.
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Shake Shack's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Current Ratio (A: Dec. 2023 ) | = | Total Current Assets (A: Dec. 2023 ) | / | Total Current Liabilities (A: Dec. 2023 ) |
= | 334.432 | / | 164.067 | |
= | 2.04 |
Shake Shack's Current Ratio for the quarter that ended in Dec. 2023 is calculated as
Current Ratio (Q: Dec. 2023 ) | = | Total Current Assets (Q: Dec. 2023 ) | / | Total Current Liabilities (Q: Dec. 2023 ) |
= | 334.432 | / | 164.067 | |
= | 2.04 |
* 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.
Shake Shack (NYSE:SHAK) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Thank you for viewing the detailed overview of Shake Shack's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Jeffrey Flug | director | C/O PENNANTPARK INVESTMENT CORPORATION, 445 PARK AVENUE, 10TH FLOOR, NEW YORK NY 10022 |
Chapman Charles J Iii | director | 1502 HUNTER DRIVE, WAYZATA MN 55391 |
Zach Koff | officer: Chief Operating Officer | C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003 |
Jeffrey D Lawrence | director | 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105 |
Lori George Billingsley | director | 777 HIDDEN RIDGE, IRVING TX 75038 |
Daniel Harris Meyer | director | 24 UNION SQUARE EAST, SIXTH FLOOR, NEW YORK NY 10003 |
Jenna Lyons | director | C/O J.CREW GROUP, INC., 770 BROADWAY, NEW YORK NY 10003 |
Katherine Irene Fogertey | officer: Chief Financial Officer | 225 VARICK STREET, SUITE 301, NEW YORK NY 10014 |
Randall J Garutti | director, officer: Chief Executive Officer | C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003 |
Tara Comonte | officer: CHIEF FINANCIAL OFFICER | C/O SHAKE SHACK INC., 24 UNION SQUARE EAST,5TH FLOOR, NEW YORK NY 10003 |
Tristan Walker | director | 330 WEST 34TH STREET, NEW YORK NY 10001 |
Robert T Vivian | director | C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003 |
Sumaiya Balbale | director | 697 CALMAR AVENUE, OAKLAND CA 94610 |
Select Equity Group, L.p. | director, other: See Remarks | 380 LAFAYETTE STREET, 6TH FLOOR, NEW YORK NY 10003 |
Green Equity Investors Vi, L.p. | director, 10 percent owner | 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
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