Chipotle Mexican Grill Inc (CMG)

Financial leverage ratio

		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
Total assets	US$ in thousands	9,204,370	9,011,670	8,919,840	8,411,250	8,044,360	7,911,490	7,552,440	7,053,370	6,927,500	6,817,440	6,545,340	6,467,260	6,652,960	6,627,570	6,320,450	6,149,060	5,982,900	5,631,640	5,370,130	5,206,490
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
Financial leverage ratio		2.52	2.49	2.40	2.50	2.63	2.74	2.73	2.84	2.93	2.93	3.04	3.03	2.90	2.87	2.91	2.93	2.96	3.12	3.15	3.11

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,204,370K ÷ $3,655,550K
= 2.52

The financial leverage ratio of Chipotle Mexican Grill Inc has experienced fluctuations over the given time period. From March 31, 2020, to December 31, 2020, the ratio increased from 3.11 to 2.96, suggesting a reduction in the company's dependence on debt. Subsequently, the ratio continued to decrease modestly, reaching 2.63 by December 31, 2023. The lower ratio indicates a healthier financial position with less reliance on debt financing.

However, from March 31, 2024, to December 31, 2024, there was a slight uptick in the financial leverage ratio, increasing from 2.50 to 2.52. This suggests a marginal increase in the company's usage of debt to finance its operations. Overall, a lower financial leverage ratio indicates a lower level of financial risk and greater financial stability, whereas a higher ratio may signify higher risk due to increased debt obligations. The company's trend towards lower leverage ratios can be seen as a positive indicator of its financial health and prudent financial management.