Chipotle Mexican Grill Inc (CMG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		147.04	160.46	158.73	154.97	158.94
DOH	days	2.48	2.27	2.30	2.36	2.30

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 147.04
= 2.48

Chipotle Mexican Grill Inc's Days of Inventory on Hand (DOH) has shown a slightly fluctuating trend over the past five years. As of December 31, 2020, the DOH stood at 2.30 days and increased marginally to 2.36 days by December 31, 2021. Subsequently, the DOH decreased to 2.30 days by the end of December 31, 2022, before further declining to 2.27 days by December 31, 2023. However, it rose to 2.48 days as of December 31, 2024.

Overall, the company has managed to keep its inventory turnover relatively constant, hovering around the 2-2.5 days range. A lower DOH indicates that the company is efficiently managing its inventory by quickly selling its products, which can lead to lower holding costs and potential lower risks related to inventory obsolescence. Further analysis in conjunction with other financial metrics would provide a more comprehensive view of Chipotle Mexican Grill Inc's operational efficiency and inventory management strategies.