Chipotle Mexican Grill Inc (CMG)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	11,313,860	10,984,870	10,663,240	10,204,920	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
Receivables	US$ in thousands	211,192	175,289	169,071	89,836	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
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,313,860K ÷ $211,192K
= 53.57

The receivables turnover ratio for Chipotle Mexican Grill Inc indicates how efficiently the company is collecting payments from its customers. A higher ratio suggests the company is converting its receivables into cash quickly, whereas a lower ratio may indicate potential issues with collecting payments.

Analyzing the historical data provided:
- The receivables turnover ratio fluctuated over the years, with significant variations seen from quarter to quarter.
- The ratio was relatively stable in the range of 15 to 45 in the earlier years, indicating moderate efficiency in collecting payments.
- There was a notable increase in the ratio in the first quarter of 2023, reaching 136.37, and even higher in the second quarter at 152.24, implying a significant improvement in receivables turnover during this period.
- However, the ratio dropped back to around 50 in subsequent quarters, indicating a potential slowdown in collections.
- The ratio experienced some volatility in the years following, but generally remained above 50, which suggests an overall efficient management of receivables.

In conclusion, Chipotle Mexican Grill Inc has shown varying levels of efficiency in collecting receivables over the years, with periods of both improvement and slowdown. Further monitoring and analysis of the trend in receivables turnover ratio will be crucial to assess the company's effectiveness in managing its accounts receivable.