Chipotle Mexican Grill Inc (CMG)

Days of sales outstanding (DSO)

		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
Receivables turnover		58.59	134.08	152.24	136.37	55.84	45.90	44.88	55.90	38.97	18.23	18.99	20.20	15.45	44.82	33.88	47.37	51.61	100.75	105.19	101.05
DSO	days	6.23	2.72	2.40	2.68	6.54	7.95	8.13	6.53	9.37	20.02	19.22	18.06	23.62	8.14	10.77	7.71	7.07	3.62	3.47	3.61

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 58.59
= 6.23

DSO, or Days Sales Outstanding, is a financial ratio that indicates the average number of days a company takes to collect revenue after a sale has been made. A lower DSO implies that the company is able to efficiently collect payments from customers, while a higher DSO indicates that the company may be facing challenges in receivables management.

Chipotle Mexican Grill's DSO has shown fluctuations over the past eight quarters. In Q4 2023, the DSO was 6.23 days, an increase from the previous quarter's 2.72 days. This uptick may suggest a slowdown in the collection of revenue compared to the prior quarter. However, when compared to the same quarter in the previous year, Q4 2023's DSO of 6.23 days is still an improvement from 6.54 days in Q4 2022.

Looking at the trend over the past eight quarters, Chipotle's DSO peaked at 8.13 days in Q2 2022 and has since shown a general decreasing trend, reaching a low of 2.40 days in Q2 2023. This improvement indicates that the company has been more efficient in collecting payments from customers, which may positively impact cash flow and liquidity.

Overall, while the recent increase in DSO from Q3 to Q4 2023 could be a point of concern, Chipotle Mexican Grill's overall trend of decreasing DSO over the past quarters suggests improvements in receivables management efficiency. However, it would be essential for the company to closely monitor and manage its DSO to ensure timely revenue collection and maintain healthy cash flow levels.