Chipotle Mexican Grill Inc (CMG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.39% | 36.10% | 34.43% | 32.60% | 29.77% |
| Operating profit margin | 16.94% | 15.78% | 13.44% | 10.67% | 4.85% |
| Pretax margin | 17.77% | 16.42% | 13.68% | 10.77% | 4.91% |
| Net profit margin | 13.56% | 12.45% | 10.41% | 8.65% | 5.94% |
Chipotle Mexican Grill Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has been steadily increasing from 29.77% in 2020 to 36.39% in 2024, indicating the company's ability to efficiently manage its production and distribution costs.
The operating profit margin has seen significant growth, more than doubling from 4.85% in 2020 to 16.94% in 2024. This demonstrates Chipotle's effective cost management and operational efficiency in generating profits from its core business activities.
Similarly, the pretax margin has shown consistent growth, increasing from 4.91% in 2020 to 17.77% in 2024. This signifies the company's ability to generate profits before accounting for taxes, reflecting strong financial performance and effective utilization of resources.
The net profit margin has also improved steadily, rising from 5.94% in 2020 to 13.56% in 2024. This indicates that Chipotle has been able to maintain profitability after accounting for all expenses including taxes, showcasing its overall profitability and financial health.
Overall, the trend of increasing profitability margins across all categories demonstrates Chipotle Mexican Grill Inc's strong operational performance and ability to effectively manage costs while generating sustainable profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.82% | 19.37% | 16.75% | 12.10% | 4.85% |
| Return on assets (ROA) | 16.67% | 15.27% | 12.98% | 9.81% | 5.95% |
| Return on total capital | 52.42% | 50.87% | 49.00% | 35.04% | 14.36% |
| Return on equity (ROE) | 41.97% | 40.13% | 37.97% | 28.42% | 17.61% |
Chipotle Mexican Grill Inc's profitability ratios show a positive trend over the years, indicating an improving financial performance.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has steadily increased from 4.85% in December 2020 to 20.82% in December 2024. This suggests that the company has been able to generate more operating income relative to its total assets over time, reflecting improved operational efficiency.
2. Return on Assets (ROA):
- The ROA has also shown a consistent upward trajectory, rising from 5.95% in December 2020 to 16.67% in December 2024. This indicates that Chipotle has become more effective in generating profits from its assets.
3. Return on Total Capital:
- The Return on Total Capital has exhibited a significant growth, escalating from 14.36% in December 2020 to 52.42% in December 2024. This reflects the company's ability to generate higher returns for both equity and debt holders, implying efficient capital utilization.
4. Return on Equity (ROE):
- The ROE has also shown a positive trend, increasing from 17.61% in December 2020 to 41.97% in December 2024. This indicates that Chipotle has been increasingly effective in generating profits for its shareholders relative to their equity investments.
Overall, the improving profitability ratios suggest that Chipotle Mexican Grill Inc has been successful in enhancing its financial performance, operating efficiency, and ability to generate returns for its stakeholders.