Chipotle Mexican Grill Inc (CMG)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	7,196,630	6,943,640	6,774,190	6,526,000	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
Inventory	US$ in thousands	48,942	49,848	35,560	37,947	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
Inventory turnover		147.04	139.30	190.50	171.98	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,196,630K ÷ $48,942K
= 147.04

Chipotle Mexican Grill Inc's inventory turnover has shown some fluctuations over the past few years. It was 125.37 at the end of March 2020, indicating that the company turned over its inventory approximately 125 times during that period. The turnover rate decreased slightly to 119.51 by June 2020, and continued to trend downwards to 117.51 by September 2020.

However, there was a significant improvement in inventory turnover by the end of December 2020, reaching 158.94. This upward trend continued into the following quarters, with inventory turnover figures of 179.16 in March 2021 and 182.30 in June 2021.

Despite the strong performance in the previous periods, the inventory turnover rate decreased in the subsequent quarters. It dipped to 154.97 by the end of December 2021 and further declined to 151.32 by September 2023.

By the end of December 2024, the inventory turnover stood at 147.04, showing a slight decrease in efficiency in managing inventory. It will be important for Chipotle to monitor this ratio closely to ensure effective management of inventory levels and avoid potential issues such as excess inventory or stockouts that could impact the company's operations and finances.