Chipotle Mexican Grill Inc (CMG)

Working capital 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
Total current assets	US$ in thousands	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	1,072,200	954,756	832,402	837,746
Total current liabilities	US$ in thousands	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	666,593	634,019	548,268	581,667
Working capital turnover		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	13.77	16.75	18.27	19.62

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,871,650K ÷ ($1,620,710K – $1,030,620K)
= 16.73

Based on the data provided, the working capital turnover for Chipotle Mexican Grill has shown fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue.

In Q4 2023, the working capital turnover ratio was 16.73, indicating that Chipotle generated $16.73 in revenue for every $1 of working capital invested. This was a slight increase from the previous quarter's ratio of 16.40 in Q3 2023.

The working capital turnover ratio has been consistently high over the past few quarters, with values above 16 in Q3 and Q2 2023. However, there was a notable decrease in Q1 2023, where the ratio dropped to 24.45. This sudden dip could indicate a change in the company's efficiency in managing its working capital during that period.

Comparing the current ratios to the same quarter in the previous year, there has been a significant decline in Q4 2022, where the working capital turnover ratio was 34.00. This suggests a potential shift in the company's operations or financial management.

Overall, Chipotle Mexican Grill has maintained a relatively high working capital turnover ratio, indicating efficient use of working capital to generate revenue. However, it is essential for the company to closely monitor any fluctuations in this ratio to ensure optimal financial performance going forward.