Chipotle Mexican Grill Inc (CMG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.13 | 2.19 | 2.31 | 1.99 | 1.70 | 1.18 | 1.13 | 1.19 | 1.45 | 1.67 | 1.62 | 1.64 | 1.63 | 1.42 | 1.48 | 1.50 | 1.48 | 1.37 | 1.40 | 1.35 |
| Cash ratio | 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 | 1.32 | 1.29 | 1.31 | 1.26 |
Chipotle Mexican Grill's liquidity ratios show a generally strong liquidity position over the past eight quarters. The current ratio has been consistently above 1, indicating that the company has more than enough current assets to cover its current liabilities. The current ratio has shown a slight upward trend, reaching a high of 1.58 in Q2 2023.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained comfortably above 1 in all quarters. This suggests that Chipotle has sufficient liquid assets to meet its short-term obligations without relying on selling inventory.
The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has shown a fluctuating pattern but has generally been above 1, indicating a healthy level of cash on hand to cover immediate liabilities. However, the cash ratio saw a notable increase in Q4 2022, reaching 1.11, and has remained relatively stable since then.
Overall, based on these liquidity ratios, Chipotle Mexican Grill appears to have a solid foundation in terms of its ability to meet its short-term financial obligations and manage liquidity effectively.
See also:
Chipotle Mexican Grill Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -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 | -4.49 | -5.65 | -4.36 | -5.45 |
Chipotle Mexican Grill has demonstrated a relatively consistent and efficient cash conversion cycle over the past eight quarters. The company's cash conversion cycle measures the time it takes for Chipotle to convert its investments in inventory and other resources into cash inflows from sales.
The cash conversion cycle has fluctuated between -10.99 days to -19.06 days during this period. A negative cash conversion cycle indicates that Chipotle is able to generate cash from its operations before having to pay its suppliers, which is a favorable position.
Overall, Chipotle has consistently managed to operate with a negative cash conversion cycle, indicating efficient management of working capital and effective cash flow management. This highlights the company's ability to effectively manage its inventory, accounts receivables, and accounts payables to optimize its cash flow and liquidity position.