Chipotle Mexican Grill Inc (CMG)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,228,740	899,101	652,984	355,766	350,158
Total stockholders’ equity	US$ in thousands	3,062,210	2,368,020	2,297,370	2,020,140	1,683,030
ROE		40.13%	37.97%	28.42%	17.61%	20.81%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,228,740K ÷ $3,062,210K
= 40.13%

Chipotle Mexican Grill's return on equity (ROE) has exhibited a positive trend over the past five years, increasing from 20.81% in 2019 to 40.13% in 2023. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders. The significant improvement in ROE between 2019 and 2023 suggests that Chipotle has been successful in increasing its profitability relative to its shareholders' equity. The consistent growth in ROE demonstrates the company's ability to efficiently allocate its resources and drive profitability over time. Overall, Chipotle's strong ROE performance reflects positively on its financial health and efficiency in generating returns for its investors.