Chipotle Mexican Grill Inc (CMG)

Financial leverage 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
Total assets	US$ in thousands	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	5,104,600	4,937,940	4,659,310	4,625,480
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
Financial leverage ratio		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	3.03	3.04	3.03	3.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,044,360K ÷ $3,062,210K
= 2.63

Chipotle Mexican Grill's financial leverage ratio has been relatively stable over the past eight quarters, ranging from 2.63 to 3.04. The financial leverage ratio measures the company's use of debt to finance its operations. A lower ratio indicates lower reliance on debt funding, while a higher ratio suggests higher leverage and potential financial risk.

Chipotle's financial leverage ratio of around 2.63 to 3.04 indicates that the company has been moderately leveraged in recent quarters. It is important to note that the ideal financial leverage ratio varies by industry and company, with some industries requiring higher leverage for growth.

Overall, Chipotle Mexican Grill's consistent financial leverage ratio suggests a balanced approach to capital structure management, with a moderate reliance on debt financing to support its operations and growth initiatives. It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's risk profile and financial health.