Shake Shack (Shake Shack) Inventory Turnover : 31.74 (As of Dec. 2023)

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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 Dec. 2023 was $159 Mil. Shake Shack's Average Total Inventories for the quarter that ended in Dec. 2023 was $5 Mil. Shake Shack's Inventory Turnover for the quarter that ended in Dec. 2023 was 31.74.

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 Dec. 2023 was 2.87.

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 Dec. 2023 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.

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Shake Shack Inventory Turnover Chart

Shake Shack Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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165.74

121.41

128.64

129.19

127.10

Shake Shack Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															32.85	34.05	33.29	33.06	31.74

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 )
=	609.295	/ (	(4.184	+	5.404)	/	2 )
=	609.295	/	4.794
=	127.10

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

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	158.888	/ (	(4.608	+	5.404)	/	2 )
=	158.888	/	5.006
=	31.74

Shake Shack (NYSE:SHAK) 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 Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	5.006	/	158.888	*	365 / 4
	=	2.87

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 Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5.006	/	286.243
	=	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

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Shake Shack (Shake Shack) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Shake Shack Inc (NYSE:SHAK) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

SHAK:Mexico 9SH:Germany 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.

Executives

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