Chipotle Mexican Grill Inc (CMG)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,916,333 | 1,864,048 | 1,785,742 | 1,631,499 | 1,557,813 | 1,490,697 | 1,432,000 | 1,337,788 | 1,160,403 | 1,022,368 | 925,795 | 833,722 | 804,943 | 763,533 | 630,949 | 380,485 | 290,164 | 271,434 | 279,959 | 404,918 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,655,550 | 3,613,900 | 3,711,820 | 3,361,330 | 3,062,210 | 2,886,310 | 2,766,890 | 2,481,680 | 2,368,020 | 2,327,380 | 2,154,200 | 2,133,960 | 2,297,370 | 2,310,910 | 2,174,160 | 2,097,530 | 2,020,140 | 1,805,590 | 1,704,500 | 1,672,020 |
| Return on total capital | 52.42% | 51.58% | 48.11% | 48.54% | 50.87% | 51.65% | 51.75% | 53.91% | 49.00% | 43.93% | 42.98% | 39.07% | 35.04% | 33.04% | 29.02% | 18.14% | 14.36% | 15.03% | 16.42% | 24.22% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,916,333K ÷ ($—K + $3,655,550K)
= 52.42%
The return on total capital for Chipotle Mexican Grill Inc has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. Starting at 24.22% in March 2020, the return on total capital declined to 14.36% by December 2020, possibly due to operational challenges or economic conditions. However, the company experienced a significant rebound in performance, with the return on total capital steadily increasing to 52.42% by December 2024.
The improvement in return on total capital indicates that Chipotle has been effectively utilizing its capital resources to generate profits for its stakeholders. This upward trend suggests that the company has been successful in efficiently managing its investments and operations to generate higher returns compared to the capital deployed. The increasing return on total capital also reflects improved operational efficiency and profitability, which is a positive sign for investors and indicates a strong financial performance by the company over the years.
Peer comparison
Dec 31, 2024