Chipotle Mexican Grill Inc (CMG)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	6,307,620	6,079,540	5,932,160	5,776,500	5,661,730	5,594,990	5,466,140	5,286,610	5,087,090	4,770,890	4,586,510	4,354,293	4,203,080	2,992,195	2,889,492	2,925,562	2,831,475	3,724,601	3,631,136	3,522,710
Inventory	US$ in thousands	39,309	40,177	36,004	34,599	35,668	33,752	29,456	29,852	32,826	28,450	25,159	24,304	26,445	25,464	24,178	23,335	26,096	23,871	21,144	18,780
Inventory turnover		160.46	151.32	164.76	166.96	158.73	165.77	185.57	177.09	154.97	167.69	182.30	179.16	158.94	117.51	119.51	125.37	108.50	156.03	171.73	187.58

December 31, 2023 calculation

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

Chipotle Mexican Grill's inventory turnover has shown a varying trend over the past eight quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times it sells and replaces its inventory during a specific period.

In Q4 2023, the inventory turnover ratio was 74.09, indicating that the company sold and replaced its inventory approximately 74 times during that quarter. This represents a decrease from the previous quarter's ratio of 69.80. Despite the decrease, the inventory turnover ratio remains relatively high, suggesting that Chipotle is efficient in managing its inventory levels and restocking its products.

Analyzing the trend over the last two years, we can observe fluctuations in the inventory turnover ratio, with peaks and troughs in different quarters. However, the ratios have generally been above 70, indicating strong efficiency in inventory management.

The highest inventory turnover ratio was seen in Q2 2022 at 85.29, while the lowest was in Q4 2022 at 72.96. This suggests that there may be seasonal factors affecting Chipotle's inventory turnover, potentially related to sales volumes during specific quarters.

Overall, Chipotle Mexican Grill's inventory turnover ratios demonstrate a consistent focus on efficient inventory management, with the company effectively replenishing its inventory to meet customer demand.