Chipotle Mexican Grill Inc (CMG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,044,360 | 6,927,500 | 6,652,960 | 5,982,900 | 5,104,600 |
| Total stockholders’ equity | US$ in thousands | 3,062,210 | 2,368,020 | 2,297,370 | 2,020,140 | 1,683,030 |
| Financial leverage ratio | 2.63 | 2.93 | 2.90 | 2.96 | 3.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,044,360K ÷ $3,062,210K
= 2.63
The financial leverage ratio of Chipotle Mexican Grill has shown a fluctuating trend over the past five years. The ratio decreased from 3.03 in 2019 to 2.63 in 2023, indicating a reduction in the company's financial leverage. This may suggest that Chipotle has been decreasing its reliance on debt financing relative to equity financing over this period.
The ratio peaked at 2.96 in 2020 before slightly decreasing in the following years. This fluctuation could reflect changes in the company's capital structure and its strategic decisions regarding the use of debt to fund operations and growth initiatives.
Overall, the decreasing trend in Chipotle's financial leverage ratio may indicate improving financial health and risk management practices as the company seeks to maintain a balanced capital structure and reduce its reliance on debt to support its operations.
Peer comparison
Dec 31, 2023