Chipotle Mexican Grill Inc (CMG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		160.46	151.32	164.76	166.96	158.73	165.77	185.57	177.09	154.97	167.69	182.30	179.16	158.94	117.51	119.51	125.37	108.50	156.03	171.73	187.58
DOH	days	2.27	2.41	2.22	2.19	2.30	2.20	1.97	2.06	2.36	2.18	2.00	2.04	2.30	3.11	3.05	2.91	3.36	2.34	2.13	1.95

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 160.46
= 2.27

Days of inventory on hand (DOH) represents the average number of days a company holds inventory before it is sold. Looking at the historical trend of Chipotle Mexican Grill's DOH from Q1 2022 to Q4 2023, we can see fluctuations in the metric. The DOH ranged from a low of 4.28 days in Q2 2022 to a high of 5.23 days in Q3 2023.

A decreasing trend in DOH indicates that the company is managing its inventory efficiently, as it is selling off inventory quickly. Conversely, an increasing trend may suggest inefficiencies in managing inventory or possible overstocking.

Chipotle Mexican Grill's DOH has shown some variability over the past eight quarters, but overall, it seems to be relatively stable. However, attention should be paid to the fluctuation in DOH values to ensure that the company's inventory management practices remain effective and aligned with business operations.