Chipotle Mexican Grill Inc (CMG)
Payables 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 |
| Payables | US$ in thousands | 197,646 | 184,566 | 163,161 | 121,990 | 115,816 |
| Payables turnover | 31.91 | 30.68 | 31.18 | 34.45 | 34.04 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,307,620K ÷ $197,646K
= 31.91
The payables turnover ratio for Chipotle Mexican Grill has demonstrated a relatively consistent trend over the past five years. The ratio has ranged from 14.10 to 15.96 during this period, indicating the company's ability to efficiently manage its accounts payables by converting them into revenue-generating activities.
In particular, the payables turnover ratio was highest in 2020 and 2019 at 15.84 and 15.96 respectively, suggesting that the company was able to pay off its suppliers at a faster pace during those years. However, the ratio dipped slightly in 2022 to 14.10 before recovering to 14.74 in 2023.
Overall, the consistent and relatively high payables turnover ratio for Chipotle Mexican Grill indicates effective management of its accounts payables, potentially reflecting strong supplier relationships and efficient cash flow management strategies.
Peer comparison
Dec 31, 2023