Chipotle Mexican Grill Inc (CMG)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	11,313,860	10,984,870	10,663,240	10,204,920	9,871,650	9,535,930	9,284,160	8,982,700	8,634,660	8,414,690	8,146,830	7,826,030	7,547,070	7,194,150	6,843,240	6,315,440	5,984,630	5,817,140	5,619,430	5,688,920
Property, plant and equipment	US$ in thousands	2,390,130	2,320,400	2,265,690	2,202,740	2,170,040	2,093,010	2,021,960	1,981,330	1,951,150	1,871,620	1,813,350	1,779,520	1,769,280	1,719,220	1,666,180	1,613,670	1,584,310	1,547,220	1,498,050	1,465,670
Fixed asset turnover		4.73	4.73	4.71	4.63	4.55	4.56	4.59	4.53	4.43	4.50	4.49	4.40	4.27	4.18	4.11	3.91	3.78	3.76	3.75	3.88

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,313,860K ÷ $2,390,130K
= 4.73

Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. For Chipotle Mexican Grill Inc, the fixed asset turnover has been showing a consistent increasing trend from March 31, 2020, to December 31, 2024. The ratio has improved from 3.88 in March 2020 to 4.73 in December 2024.

This indicates that Chipotle has been more effective in generating sales revenue relative to its investment in fixed assets over the years. A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets efficiently to generate sales.

The continuous improvement in the fixed asset turnover ratio for Chipotle Mexican Grill Inc reflects positively on the management's ability to optimize the utilization of fixed assets, which is crucial for sustainable business growth and profitability.