Chipotle Mexican Grill Inc (CMG)

Current ratio

		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
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
Current ratio		1.57	1.53	1.58	1.41	1.28	1.32	1.26	1.32	1.58	1.78	1.73	1.75	1.73	1.51	1.59	1.62	1.61	1.51	1.52	1.44

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,620,710K ÷ $1,030,620K
= 1.57

Based on the provided data, Chipotle Mexican Grill's current ratio has exhibited some fluctuations over the last eight quarters. The current ratio measures the company's ability to pay off its short-term liabilities with its current assets.

In Q4 2023, Chipotle's current ratio stands at 1.57, indicating that the company has $1.57 in current assets for every $1 in current liabilities. This suggests a relatively healthy liquidity position, as the company has more than enough current assets to cover its short-term obligations.

Comparing this with the previous quarters, we observe that the current ratio has ranged from 1.41 to 1.58 over the past year. The slight fluctuations may indicate changes in the company's liquidity position, possibly due to shifts in its current asset and liability composition.

Overall, Chipotle's current ratio has generally been above 1, indicating that the company has sufficient current assets to cover its current liabilities. A current ratio above 1 signifies that a company is in a good position to meet its short-term obligations. However, stakeholders should continue monitoring this ratio to ensure Chipotle maintains its liquidity position amid potential changes in the business environment.