Chipotle Mexican Grill Inc (CMG)

Payables 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
Payables	US$ in thousands	197,646	207,541	162,041	182,606	184,566	167,842	158,581	168,905	163,161	171,712	140,251	147,417	121,990	157,324	160,523	130,423	115,816	118,483	99,007	106,214
Payables turnover		31.91	29.29	36.61	31.63	30.68	33.33	34.47	31.30	31.18	27.78	32.70	29.54	34.45	19.02	18.00	22.43	24.45	31.44	36.68	33.17

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,307,620K ÷ $197,646K
= 31.91

The payables turnover ratio for Chipotle Mexican Grill has shown some fluctuation over the past eight quarters. The ratio has ranged from a low of 13.51 in Q3 2023 to a high of 16.86 in Q2 2023.

Overall, the company's ability to manage its accounts payable effectively has been fairly consistent, with the ratio averaging around 14.80 over the period. This indicates that, on average, Chipotle is able to pay off its suppliers approximately 14.80 times a year.

A higher payables turnover ratio generally indicates that a company is managing its payables efficiently and may be benefiting from favorable credit terms from its suppliers. Conversely, a lower ratio could suggest that the company is taking longer to pay its suppliers, potentially leading to strained supplier relationships.

It is important for investors and analysts to continue monitoring Chipotle's payables turnover ratio to assess the company's financial health and its ability to effectively manage its working capital.