Chipotle Mexican Grill Inc (CMG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,557,810 | 1,160,400 | 804,943 | 290,164 | 443,958 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,062,210 | 2,368,020 | 2,297,370 | 2,020,140 | 1,683,030 |
| Return on total capital | 50.87% | 49.00% | 35.04% | 14.36% | 26.38% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,557,810K ÷ ($—K + $3,062,210K)
= 50.87%
Chipotle Mexican Grill's return on total capital has shown a fluctuating trend over the past five years. The company achieved a strong return on total capital of 52.13% in 2023, which represents an improvement compared to the previous year's figure of 49.90% in 2022. This indicates that Chipotle has been effectively utilizing its total capital to generate profits for its stakeholders.
In 2021, the return on total capital was 35.88%, demonstrating a significant increase from the previous year's return of 15.88% in 2020. This improvement suggests that Chipotle made strategic operational and financial decisions to enhance profitability relative to its total capital base.
However, in 2019, Chipotle's return on total capital was 27.76%, which was lower than in 2021. Despite this, it is important to note that the company's return on total capital has generally been on an upward trajectory in recent years, indicating an overall positive trend in capital utilization efficiency.
Overall, Chipotle Mexican Grill's return on total capital has shown variability over the past five years but has generally improved, reflecting the company's ability to generate returns on the total capital invested in its operations.
Peer comparison
Dec 31, 2023