Chipotle Mexican Grill Inc (CMG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,916,330 | 1,557,810 | 1,160,400 | 804,943 | 290,164 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,655,550 | 3,062,210 | 2,368,020 | 2,297,370 | 2,020,140 |
| Return on total capital | 52.42% | 50.87% | 49.00% | 35.04% | 14.36% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,916,330K ÷ ($—K + $3,655,550K)
= 52.42%
Chipotle Mexican Grill Inc's return on total capital has shown a consistent upward trend over the period from December 31, 2020, to December 31, 2024. The return on total capital increased from 14.36% in 2020 to 52.42% in 2024. This significant improvement indicates the company's ability to generate higher returns relative to the total capital employed in its operations. Chipotle's management has effectively utilized its capital resources to generate shareholder value and drive profitability. The increasing trend in return on total capital reflects the company's strong operational performance and efficient capital allocation strategies. Overall, the consistently improving return on total capital indicates Chipotle Mexican Grill Inc's enhanced profitability and financial health.
Peer comparison
Dec 31, 2024