Shake Shack (STU:9SH) Inventory Turnover : 30.93 (As of Mar. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Shake Shack Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Shake Shack's Cost of Goods Sold for the three months ended in Mar. 2024 was €149 Mil. Shake Shack's Average Total Inventories for the quarter that ended in Mar. 2024 was €5 Mil. Shake Shack's Inventory Turnover for the quarter that ended in Mar. 2024 was 30.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shake Shack's Days Inventory for the three months ended in Mar. 2024 was 2.95.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Shake Shack's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.02.

Shake Shack Inventory Turnover Historical Data

The historical data trend for Shake Shack's Inventory Turnover 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.

* Premium members only.

Shake Shack Inventory Turnover Chart

Shake Shack Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

Get a 7-Day Free Trial

167.47

116.60

132.69

133.17

125.49

Shake Shack Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															33.87	33.10	33.31	31.42	30.93

Shake Shack Inventory Turnover Calculation

Shake Shack's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	558.724	/ (	(3.95	+	4.955)	/	2 )
=	558.724	/	4.4525
=	125.49

Shake Shack's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	148.821	/ (	(4.955	+	4.667)	/	2 )
=	148.821	/	4.811
=	30.93

Shake Shack (STU:9SH) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Shake Shack's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	4.811	/	148.821	*	365 / 4
	=	2.95

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Shake Shack's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	4.811	/	267.264
	=	0.02

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Shake Shack Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Shake Shack's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Shake Shack (STU:9SH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Shake Shack Inc (STU:9SH) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

SHAK:USA SHAK:Mexico

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 (STU:9SH) Headlines

No Headlines