Chipotle Mexican Grill Inc (CMG)

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

Based on the data provided for Chipotle Mexican Grill's debt-to-equity ratio for the past eight quarters, it is evident that the ratio has consistently been recorded as 0.00. A debt-to-equity ratio of 0.00 indicates that the company has no debt on its balance sheet relative to its equity during these periods. This implies that Chipotle Mexican Grill has been primarily financed by equity rather than debt.

A debt-to-equity ratio of 0.00 is quite unusual and suggests a low financial risk for the company, as it indicates a strong financial position with minimal reliance on debt financing. However, it is important to note that a zero debt-to-equity ratio may also signal potential underutilization of leverage, as debt can be a cheaper source of capital compared to equity.

It would be prudent for investors and stakeholders to further investigate the reasons behind Chipotle Mexican Grill's consistent zero debt-to-equity ratio and assess whether the company's capital structure is optimal for its growth and profitability objectives.