Chipotle Mexican Grill Inc (CMG)

Working capital 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
Total current assets	US$ in thousands	1,780,590	1,680,260	1,786,300	1,645,770	1,620,710	1,669,340	1,556,420	1,261,440	1,175,840	1,077,430	1,046,300	1,096,490	1,381,560	1,518,610	1,447,810	1,456,850	1,420,240	1,211,280	1,150,340	1,075,500
Total current liabilities	US$ in thousands	1,168,770	1,037,880	1,043,160	997,353	1,030,620	1,087,710	982,250	894,092	921,880	817,857	831,623	833,738	873,682	850,964	835,486	834,004	822,199	801,717	723,178	665,795
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,313,860K ÷ ($1,780,590K – $1,168,770K)
= 18.49

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. It is calculated by dividing total revenue by the average working capital (current assets minus current liabilities) for a given period.

Examining the trend of Chipotle Mexican Grill Inc's working capital turnover ratio from March 31, 2020, to December 31, 2024, reveals fluctuating but generally improving efficiency in working capital utilization. The ratio ranged from a low of 10.01 in December 31, 2020, to a peak of 37.95 in June 30, 2022.

The company demonstrated a substantial improvement in working capital efficiency from 2020 to early 2022, with the ratio steadily increasing. However, a slight decline was observed in the latter half of 2022 and into 2023, indicating a potential decrease in operational efficiency.

The working capital turnover ratio rebounded in March 31, 2024, showing signs of recovery in working capital management. Although the ratio fluctuated over the period analyzed, Chipotle Mexican Grill Inc managed to maintain moderate to high levels of efficiency in converting working capital into sales, suggesting effective utilization of resources to generate revenue.