Chipotle Mexican Grill Inc (CMG)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	53.57	62.67	63.07	113.59	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
Payables turnover	34.16	31.38	33.29	33.15	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
Working capital turnover	18.49	17.10	14.35	15.74	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

The activity ratios of Chipotle Mexican Grill Inc reflect its efficiency in managing its resources.

1. Inventory Turnover: The company's inventory turnover has been consistently high, ranging from 125.37 to 190.50, indicating that Chipotle efficiently sells through its inventory multiple times during the year.

2. Receivables Turnover: The receivables turnover ratio fluctuates significantly, ranging from 15.45 to 152.24. The lower turnover ratios in some periods suggest that the company takes longer to collect payments from customers.

3. Payables Turnover: Chipotle's payables turnover ratios range from 18.00 to 36.61, indicating that the company efficiently manages its payables by paying off its suppliers at regular intervals.

4. Working Capital Turnover: The working capital turnover ratios range from 10.01 to 37.95, showing how effectively Chipotle utilizes its working capital to generate sales. Higher turnover ratios indicate efficient use of working capital.

Overall, Chipotle Mexican Grill Inc demonstrates strong efficiency in managing its inventory, receivables, payables, and working capital, which are essential factors in maintaining a healthy and sustainable business operation.

Average number of days

		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
Days of inventory on hand (DOH)	days	2.48	2.62	1.92	2.12	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
Days of sales outstanding (DSO)	days	6.81	5.82	5.79	3.21	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
Number of days of payables	days	10.69	11.63	10.96	11.01	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

Based on the provided data on Chipotle Mexican Grill Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- Chipotle's average DOH has been relatively stable over the years, ranging from a low of 1.92 days to a high of 3.11 days.
- Lower DOH values indicate that Chipotle is efficiently managing its inventory, ensuring fresher ingredients and minimizing holding costs.
- Chipotle has shown a consistent effort to optimize its inventory levels, which is crucial in the restaurant industry's fast-paced environment.

2. Days of Sales Outstanding (DSO):
- Chipotle's DSO has fluctuated significantly over time, ranging from as low as 2.40 days to as high as 23.62 days.
- Lower DSO values are favorable as they indicate that Chipotle is collecting its receivables quickly, improving cash flow and reducing the risk of bad debt.
- The significant variations in DSO suggest that Chipotle may need to enhance its credit control policies or streamline its billing and collection processes.

3. Number of Days of Payables:
- Chipotle's average payables period has been relatively stable, with values ranging from 9.97 days to 20.28 days.
- A longer payables period may indicate that Chipotle is effectively managing its working capital by taking advantage of trade credit terms.
- However, a prolonged payables period may strain relationships with suppliers if not managed carefully.

In conclusion, Chipotle's activity ratios reflect its efforts to effectively manage inventory levels, receivables, and payables over the years. Continuous monitoring and optimization of these ratios are essential for maintaining efficient operations and sustaining financial health in the competitive restaurant industry.

Long-term

	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
Fixed asset turnover	4.73	4.73	4.71	4.63	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
Total asset turnover	1.23	1.22	1.20	1.21	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

Chipotle Mexican Grill Inc's fixed asset turnover ratio has shown a consistent uptrend over the years, indicating that the company is generating more revenue relative to its investment in fixed assets. This can be a positive sign of operational efficiency and effective utilization of its fixed assets.

On the other hand, the total asset turnover ratio has displayed fluctuations, initially decreasing and then showing a gradual increase. This could indicate fluctuations in sales relative to the total assets employed by the company. However, the ratio has generally trended upwards, suggesting that Chipotle is becoming more efficient in generating sales from its total assets.

Overall, the upward trends in both the fixed asset turnover and total asset turnover ratios suggest that Chipotle Mexican Grill Inc has been improving its efficiency in asset utilization and generating revenue over time.