Chipotle Mexican Grill Inc (CMG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.63 | 2.93 | 2.90 | 2.96 | 3.03 |
Chipotle Mexican Grill's solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at or close to zero during this period, suggesting that the company relies minimally on debt financing to support its operations. Additionally, the negative values observed in 2019 for these ratios may be due to the company having more cash and other current assets than total debt at that time.
However, the financial leverage ratio has shown some fluctuation over the same period, with a downward trend from 2019 to 2023. This ratio indicates that the company's financial leverage has been gradually decreasing, which could imply a lower level of financial risk and potentially increased financial stability.
Overall, Chipotle Mexican Grill's solvency ratios reflect a strong financial position with minimal debt obligations relative to its assets and equity, as well as a decreasing reliance on leverage over time.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 54.92 | 26.17 | 5.04 | 13.93 |
It appears that the table provided does not include the specific interest coverage ratio for Chipotle Mexican Grill for the years ending December 31, 2019 to 2023. It is essential to have this specific ratio to analyze the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Without this information, a detailed analysis of Chipotle's interest coverage over the mentioned years cannot be conducted. I recommend obtaining the interest coverage ratio for each year to thoroughly assess the company's financial health and ability to meet its financial obligations.