Chipotle Mexican Grill Inc (CMG)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	2.48	2.62	1.92	2.12	2.27	2.41	2.22	2.19	2.30	2.20	1.97	2.06	2.36	2.18	2.00	2.04	2.30	3.11	3.05	2.91
Days of sales outstanding (DSO)	days	6.81	5.82	5.79	3.21	6.23	2.72	2.40	2.68	6.54	7.95	8.13	6.53	9.37	20.02	19.22	18.06	23.62	8.14	10.77	7.71
Number of days of payables	days	10.69	11.63	10.96	11.01	11.44	12.46	9.97	11.54	11.90	10.95	10.59	11.66	11.71	13.14	11.16	12.36	10.59	19.19	20.28	16.27
Cash conversion cycle	days	-1.39	-3.19	-3.26	-5.68	-2.93	-7.33	-5.36	-6.68	-3.06	-0.79	-0.49	-3.07	0.01	9.06	10.06	7.75	15.32	-7.94	-6.45	-5.66

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.48 + 6.81 – 10.69
= -1.39

The cash conversion cycle (CCC) for Chipotle Mexican Grill Inc fluctuated throughout the observed periods, indicating variations in its efficiency in managing its working capital. A negative CCC value suggests that the company is able to convert its resources into cash quickly.

- In the period ending December 31, 2020, the CCC increased significantly to 15.32 days, indicating a delay in converting resources into cash.
- Subsequently, in the following periods, the CCC improved notably, decreasing to 0.01 days by December 31, 2021. This indicates a more efficient management of working capital.
- From March 31, 2022, to December 31, 2024, the CCC remained consistently negative, showcasing the company's ability to manage its cash conversion cycle effectively.
- The most recent CCC data, ending December 31, 2024, reflects a CCC of -1.39 days, indicating that Chipotle continued to efficiently convert its resources into cash.

Overall, Chipotle Mexican Grill Inc showcases a trend towards improved efficiency in its cash conversion cycle, as evidenced by the declining or consistently negative CCC values in the observed periods.