Chipotle Mexican Grill Inc (CMG)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	748,537	560,609	384,000	815,374	607,987
Short-term investments	US$ in thousands	1,348,760	1,469,680	1,030,270	260,945	343,616
Receivables	US$ in thousands	211,192	168,495	154,621	193,663	387,283
Total current liabilities	US$ in thousands	1,168,770	1,030,620	921,880	873,682	822,199
Quick ratio		1.98	2.13	1.70	1.45	1.63

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($748,537K + $1,348,760K + $211,192K) ÷ $1,168,770K
= 1.98

The quick ratio of Chipotle Mexican Grill Inc has shown fluctuations over the past five years. It was 1.63 as of December 31, 2020, indicating that the company had $1.63 in liquid assets to cover each $1 of current liabilities.

In the following year, the quick ratio decreased to 1.45, suggesting a slight decrease in the company's ability to meet its short-term obligations with its most liquid assets. However, by December 31, 2022, the quick ratio improved to 1.70, indicating a better liquidity position compared to the previous year.

By December 31, 2023, the quick ratio increased significantly to 2.13, indicating a substantial improvement in the company's ability to cover its short-term liabilities with liquid assets. This improvement continued into December 31, 2024, with a quick ratio of 1.98, which still reflects a strong liquidity position compared to the baseline year.

Overall, the trend in Chipotle Mexican Grill Inc's quick ratio suggests fluctuations but generally indicates a solid ability to meet its short-term obligations with its readily available liquid assets over the five-year period.