Chipotle Mexican Grill Inc (CMG)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		53.57	62.67	63.07	113.59	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
DSO	days	6.81	5.82	5.79	3.21	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 53.57
= 6.81

The Days of Sales Outstanding (DSO) for Chipotle Mexican Grill Inc has shown fluctuations over the years, reflecting the company's ability to collect revenue from its customers. In March 2020, the DSO was at 7.71 days, indicating a relatively efficient collection process. However, by December 2020, the DSO increased significantly to 23.62 days, which might suggest challenges in collecting payments from customers within a reasonable timeframe.

Subsequently, there was a gradual improvement in DSO numbers throughout 2021 and early 2022, reaching a low of 2.40 days in June 2023. This trend indicated that Chipotle was becoming more efficient in managing its accounts receivable and collecting sales revenue promptly.

However, the DSO increased again in the following quarters, settling around 6-8 days from September 2023 to September 2024. This moderate increase may reflect changes in customer payment behavior or variations in the company's sales practices.

Overall, monitoring the DSO metric can provide insights into Chipotle's effectiveness in managing its cash flows and working capital by analyzing the efficiency of its credit sales and collection processes.