Chipotle Mexican Grill Inc (CMG)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,683,030	1,622,450	1,538,050	1,483,800
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,062,210K)
= 0.00

Based on the data provided for Chipotle Mexican Grill's debt-to-capital ratio over the last eight quarters, it is evident that the company has consistently maintained a debt-to-capital ratio of 0.00 throughout this period. This indicates that Chipotle has been operating with no debt as a component of its capital structure, relying solely on equity to fund its operations and expansion.

A debt-to-capital ratio of 0.00 signifies that the company is not utilizing any debt to finance its operations, which may suggest a conservative financial strategy or a strong cash position that allows it to operate without the need for external borrowing. It also indicates a low level of financial risk associated with the company's capital structure, as there is no debt that needs to be serviced through interest payments.

While a debt-to-capital ratio of 0.00 may be considered favorable due to the absence of debt-related risks, it is important to note that excessive reliance on equity financing could potentially limit the company's growth opportunities or the ability to take advantage of favorable debt financing options. Additionally, the absence of debt in the capital structure may also impact the company's overall cost of capital and attractiveness to certain investors.

In conclusion, Chipotle Mexican Grill's consistent debt-to-capital ratio of 0.00 reflects its current financial position of operating without any debt obligations and suggests a cautious approach to managing its capital structure.