Chipotle Mexican Grill Inc (CMG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,620,710 | 1,175,840 | 1,381,560 | 1,420,240 | 1,072,200 |
| Total current liabilities | US$ in thousands | 1,030,620 | 921,880 | 873,682 | 822,199 | 666,593 |
| Current ratio | 1.57 | 1.28 | 1.58 | 1.73 | 1.61 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,620,710K ÷ $1,030,620K
= 1.57
The current ratio for Chipotle Mexican Grill has fluctuated over the past five years, with the ratio standing at 1.57 as of December 31, 2023. This indicates that for every dollar of current liabilities, Chipotle has $1.57 in current assets available to cover those obligations.
In comparison to the previous years, the current ratio was lower in 2022 at 1.28, signifying a decrease in the company's short-term liquidity compared to the prior year. The ratio improved in 2023, surpassing the 2021 ratio of 1.58 but remained below the 2020 and 2019 levels of 1.73 and 1.61, respectively.
A current ratio above 1 typically suggests that a company can cover its short-term liabilities with its current assets. However, it is important to assess the trend of the ratio over multiple years to determine the company's ability to effectively manage its short-term financial requirements. Overall, Chipotle Mexican Grill's current ratio has shown variability in recent years, indicating fluctuations in the company's liquidity position.
Peer comparison
Dec 31, 2023