Chipotle Mexican Grill Inc (CMG)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,780,590	1,620,710	1,175,840	1,381,560	1,420,240
Total current liabilities	US$ in thousands	1,168,770	1,030,620	921,880	873,682	822,199
Current ratio		1.52	1.57	1.28	1.58	1.73

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,780,590K ÷ $1,168,770K
= 1.52

The current ratio of Chipotle Mexican Grill Inc has shown varying trends over the past five years. As of December 31, 2020, the current ratio stood at 1.73, indicating that the company had $1.73 in current assets to cover each dollar of current liabilities. The ratio decreased to 1.58 by the end of 2021, suggesting a slight decline in the company's liquidity position.

In the following year, as of December 31, 2022, the current ratio dropped further to 1.28, signaling potential challenges in meeting short-term obligations. However, by the end of 2023, the ratio improved to 1.57, indicating a recovery in the company's liquidity position. As of December 31, 2024, the current ratio stood at 1.52, suggesting that Chipotle Mexican Grill Inc continues to maintain a sufficient level of current assets to cover its current liabilities.

Overall, the fluctuation in Chipotle Mexican Grill Inc's current ratio over the years may reflect varying levels of efficiency in managing its current assets and liabilities. It is essential for the company to closely monitor its liquidity position to ensure it can meet its short-term financial obligations effectively.