Chipotle Mexican Grill Inc (CMG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	11,313,900	9,871,650	8,634,650	7,547,060	5,984,630
Total current assets	US$ in thousands	1,780,590	1,620,710	1,175,840	1,381,560	1,420,240
Total current liabilities	US$ in thousands	1,168,770	1,030,620	921,880	873,682	822,199
Working capital turnover		18.49	16.73	34.00	14.86	10.01

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,313,900K ÷ ($1,780,590K – $1,168,770K)
= 18.49

The working capital turnover ratio for Chipotle Mexican Grill Inc has shown a positive trend over the years, increasing from 10.01 in 2020 to 18.49 in 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue.

A higher working capital turnover ratio suggests that the company is managing its current assets and liabilities effectively to support its operations. Chipotle's significant improvement in this ratio indicates a more efficient use of its resources to drive sales and operations.

While the working capital turnover ratio may fluctuate from year to year, the increasing trend showcases Chipotle's ability to optimize its working capital management. It is important for investors and stakeholders to monitor this ratio as it reflects the company's efficiency in utilizing its resources to support its core business activities.