Chipotle Mexican Grill Inc (CMG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	6,307,620	5,661,730	5,087,090	4,203,080	3,941,940
Inventory	US$ in thousands	39,309	35,668	32,826	26,445	26,096
Inventory turnover		160.46	158.73	154.97	158.94	151.06

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,307,620K ÷ $39,309K
= 160.46

Chipotle Mexican Grill has consistently shown a strong inventory turnover ratio over the past five years, indicating efficient management of its inventory. The ratio has ranged from 70.33 to 74.09, with a slight increase in 2023 compared to 2022. This implies that the company is able to sell and replace its inventory relatively quickly, which is a positive sign of effective inventory management. Chipotle's ability to maintain a high inventory turnover ratio suggests that it is effectively managing its supply chain and inventory levels to meet customer demand.