Chipotle Mexican Grill Inc (CMG)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,534,110	1,228,740	899,101	652,984	355,766
Total stockholders’ equity	US$ in thousands	3,655,550	3,062,210	2,368,020	2,297,370	2,020,140
ROE		41.97%	40.13%	37.97%	28.42%	17.61%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,534,110K ÷ $3,655,550K
= 41.97%

Chipotle Mexican Grill Inc's Return on Equity (ROE) has shown consistent growth over the years, increasing from 17.61% in December 2020 to 41.97% in December 2024. This upward trend indicates that the company is effectively generating profits from shareholders' equity. A ROE of 41.97% in December 2024 signifies that the company is generating $0.42 in net income for every dollar of shareholders' equity, which reflects strong efficiency in utilizing equity investments to generate earnings. This sustained improvement in ROE suggests that Chipotle Mexican Grill Inc is efficiently managing its assets and operations to generate higher returns for its shareholders. It indicates an increasing level of profitability and effectiveness in utilizing shareholders' equity to drive earnings growth.