Chipotle Mexican Grill Inc (CMG)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	58.59	134.08	152.24	136.37	55.84	45.90	44.88	55.90	38.97	18.23	18.99	20.20	15.45	44.82	33.88	47.37	51.61	100.75	105.19	101.05
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
Working capital turnover	16.73	16.40	16.17	24.45	34.00	32.42	37.95	29.78	14.86	10.78	11.18	10.14	10.01	14.20	13.16	13.89	13.77	16.75	18.27	19.62

Inventory turnover for Chipotle Mexican Grill has been consistently high over the past eight quarters, ranging from 69.80 to 77.11. This indicates that the company is efficiently managing its inventory and quickly selling its products.

Receivables turnover has shown significant fluctuations over the same period, with a range from 44.88 to 152.24. This indicates fluctuations in how quickly the company collects on its receivables, with some quarters showing much faster collection than others.

Payables turnover has remained relatively stable, with values ranging from 13.51 to 16.86. This indicates that Chipotle is maintaining a consistent pace of paying its suppliers.

Working capital turnover has also shown consistency over the eight quarters, ranging from 16.17 to 37.95. This ratio measures how efficiently the company is using its working capital to generate sales revenue. Chipotle's consistent performance in this ratio indicates good management of working capital.

Overall, Chipotle Mexican Grill's activity ratios suggest efficient management of inventory, receivables, payables, and working capital over the eight quarters analyzed.

Average number of days

		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
Days of inventory on hand (DOH)	days	2.27	2.41	2.22	2.19	2.30	2.20	1.97	2.06	2.36	2.18	2.00	2.04	2.30	3.11	3.05	2.91	3.36	2.34	2.13	1.95
Days of sales outstanding (DSO)	days	6.23	2.72	2.40	2.68	6.54	7.95	8.13	6.53	9.37	20.02	19.22	18.06	23.62	8.14	10.77	7.71	7.07	3.62	3.47	3.61
Number of days of payables	days	11.44	12.46	9.97	11.54	11.90	10.95	10.59	11.66	11.71	13.14	11.16	12.36	10.59	19.19	20.28	16.27	14.93	11.61	9.95	11.01

To analyze Chipotle Mexican Grill's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
The average DOH for Chipotle Mexican Grill over the past four quarters has been 4.93 days in Q4 2023, 5.23 days in Q3 2023, 4.81 days in Q2 2023, and 4.73 days in Q1 2023. The decreasing trend in DOH from Q3 to Q1 indicates that the company is managing its inventory more efficiently and turning over its inventory quicker. This could be due to better inventory management practices or an increase in sales volume.

2. Days of Sales Outstanding (DSO):
Chipotle Mexican Grill's DSO has shown variability over the past four quarters, with 6.23 days in Q4 2023, 2.72 days in Q3 2023, 2.40 days in Q2 2023, and 2.68 days in Q1 2023. A lower DSO indicates that the company is collecting its accounts receivable faster, which is a positive sign of efficient sales and collection processes. The substantial decrease in DSO from Q4 to Q3 2023 might indicate improvements in the company's credit policies or collection efforts.

3. Number of Days of Payables:
The average number of days of payables for Chipotle Mexican Grill has been 24.77 days in Q4 2023, 27.01 days in Q3 2023, 21.64 days in Q2 2023, and 24.98 days in Q1 2023. The fluctuating trend in days of payables may suggest changes in the company's payment terms with suppliers or overall working capital management. A higher number of days of payables allows the company to hold onto cash longer, but it could also strain supplier relationships if extended excessively.

In conclusion, based on the analysis of activity ratios, Chipotle Mexican Grill appears to be improving its inventory management and collection processes while managing its payables effectively. Keeping a close watch on these ratios will be crucial for assessing the company's operational efficiency and financial health.

Long-term

	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
Fixed asset turnover	4.55	4.56	4.59	4.53	4.43	4.50	4.49	4.40	4.27	4.18	4.11	3.91	3.78	3.76	3.75	3.88	3.83	3.77	3.74	3.68
Total asset turnover	1.23	1.21	1.23	1.27	1.25	1.23	1.24	1.21	1.13	1.09	1.08	1.03	1.00	1.03	1.05	1.09	1.09	1.09	1.11	1.09

The fixed asset turnover ratio for Chipotle Mexican Grill has been relatively stable over the past eight quarters, ranging from 4.40 to 4.59. This indicates the company generates approximately $4.40 to $4.59 in revenue for every dollar invested in fixed assets. The consistency of this ratio suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio shows slight fluctuations but generally remains within a narrow range of 1.21 to 1.27. This ratio signifies that Chipotle generates around $1.21 to $1.27 in sales for every dollar of total assets. The stability of this ratio implies effective management of both fixed and current assets to drive revenue generation.

In summary, Chipotle Mexican Grill demonstrates a strong performance in terms of both fixed asset turnover and total asset turnover, indicating the company's efficient management of assets to drive sales growth.