Chipotle Mexican Grill Inc (CMG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,557,810 | 1,160,400 | 804,943 | 290,164 | 443,958 |
| Total assets | US$ in thousands | 8,044,360 | 6,927,500 | 6,652,960 | 5,982,900 | 5,104,600 |
| Operating ROA | 19.37% | 16.75% | 12.10% | 4.85% | 8.70% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,557,810K ÷ $8,044,360K
= 19.37%
Chipotle Mexican Grill's operating return on assets (ROA) has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in generating operating income from its assets. The operating ROA increased from 9.15% in 2019 to 19.84% in 2023, reaching its highest level in the period analyzed. This suggests that Chipotle has been effectively utilizing its assets to generate operating profits.
The significant improvement in operating ROA from 2020 to 2023 reflects the company's ability to enhance operational efficiency and profitability. Chipotle's focus on optimizing its asset utilization and operational performance has resulted in a higher return on assets, indicating improved management effectiveness and profitability.
Overall, the increasing trend in Chipotle's operating ROA demonstrates the company's strength in generating operating income relative to its asset base, which is a positive indicator of financial performance and management efficiency.
Peer comparison
Dec 31, 2023