Chipotle Mexican Grill Inc (CMG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,871,650	8,634,650	7,547,060	5,984,630	5,586,370
Property, plant and equipment	US$ in thousands	2,170,040	1,951,150	1,769,280	1,584,310	1,458,690
Fixed asset turnover		4.55	4.43	4.27	3.78	3.83

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,871,650K ÷ $2,170,040K
= 4.55

Chipotle Mexican Grill's fixed asset turnover has shown a positive trend over the past five years, increasing from 3.83 in 2019 to 4.55 in 2023. This indicates that the company is generating more revenue per dollar invested in fixed assets, reflecting efficient utilization of its fixed assets to generate sales. The consistent upward trajectory suggests that Chipotle has been effectively managing its fixed assets to drive revenue growth. This improvement in fixed asset turnover ratio points towards greater operational efficiency and effective capital allocation within the organization. It indicates that Chipotle has been able to enhance productivity and generate higher sales relative to the value of its fixed assets over the years.