Chipotle Mexican Grill Inc (CMG)

Receivables 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
Revenue (ttm)	US$ in thousands	9,871,650	9,535,930	9,284,160	8,982,700	8,634,660	8,414,690	8,146,830	7,826,030	7,547,070	7,194,150	6,843,240	6,315,440	5,984,630	5,817,140	5,619,430	5,688,920	5,586,370	5,371,210	5,192,520	5,024,810
Receivables	US$ in thousands	168,495	71,122	60,985	65,869	154,621	183,340	181,510	139,996	193,663	394,692	360,309	312,571	387,283	129,802	165,846	120,092	108,250	53,313	49,362	49,725
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,871,650K ÷ $168,495K
= 58.59

The receivables turnover ratio for Chipotle Mexican Grill has shown considerable fluctuations over the past eight quarters. The ratio measures how efficiently the company is collecting payments from its customers.

In Q1 2022, the ratio was 55.90, which indicates that, on average, Chipotle turned over its accounts receivable balance approximately 55.90 times during that quarter. The ratio then increased in Q2 2022 to 44.88, potentially reflecting a lengthening of the collection period for receivables. However, in the subsequent quarters, the company saw a significant improvement in its collection efficiency, with the ratio reaching 58.59 in Q4 2023.

The higher receivables turnover ratios in Q3 2023 (134.08) and Q2 2023 (152.24) suggest that Chipotle was able to collect payments more quickly from its customers during those periods. This could be due to improved credit policies, more efficient collection processes, or a decrease in the average accounts receivable balance.

Overall, the fluctuation in Chipotle's receivables turnover ratio indicates varying levels of effectiveness in managing accounts receivable and collecting payments from customers over the analyzed quarters. Further analysis of the underlying reasons for these fluctuations would provide deeper insights into the company's financial operations and performance.