Chipotle Mexican Grill Inc (CMG)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	748,537	698,547	806,528	727,394	560,609	602,307	504,866	409,727	384,000	366,623	520,933	615,863	815,374	721,109	668,269	694,776	607,987	662,401	605,622	500,315
Short-term investments	US$ in thousands	1,348,760	1,337,350	1,366,570	1,384,950	1,469,680	1,703,400	1,702,280	1,305,720	1,030,270	417,278	240,684	240,379	260,945	301,534	322,460	363,585	343,616	342,819	301,041	380,978
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
Cash ratio		1.79	1.96	2.08	2.12	1.97	2.12	2.25	1.92	1.53	0.96	0.92	1.03	1.23	1.20	1.19	1.27	1.16	1.25	1.25	1.32

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($748,537K + $1,348,760K) ÷ $1,168,770K
= 1.79

The cash ratio of Chipotle Mexican Grill Inc has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The cash ratio started at 1.32 on March 31, 2020, indicating that for every $1 of current liabilities, Chipotle had $1.32 in cash and cash equivalents. Over the next few quarters, the ratio slightly decreased but remained above 1, reflecting the company's solid liquidity position.

However, from June 30, 2022, to September 30, 2022, there was a noticeable decline in the cash ratio, dropping to 0.96. This signaled a potential liquidity concern as the company's ability to cover its short-term obligations with cash diminished.

The ratio then started to recover and improved significantly in the subsequent quarters, reaching its peak of 2.25 on June 30, 2023. This significant increase suggests that Chipotle substantially increased its cash holdings relative to its short-term liabilities during this period, indicating a stronger liquidity position.

The cash ratio continued to be above 1 for the following quarters, demonstrating the company's ability to meet its short-term obligations with its available cash resources. However, there was a slight decline in the ratio towards the end of 2024, settling at 1.79 on December 31, 2024.

Overall, although the cash ratio of Chipotle Mexican Grill Inc experienced fluctuations, it generally remained above 1 throughout the period, reflecting the company's ability to cover its short-term liabilities with its cash and cash equivalents.