Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Chipotle Mexican Grill Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.23 | 1.52 | 1.57 | 1.28 | 1.58 | |
| Quick ratio | 1.01 | 1.34 | 1.37 | 1.09 | 1.35 | |
| Cash ratio | 0.88 | 1.22 | 1.26 | 0.98 | 1.23 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The liquidity position, as indicated by the assessed ratios, demonstrates fluctuations over the five-year period. Generally, a slight weakening in liquidity is observed from 2021 to 2025, although intermediate years show stabilization or improvement.
- Current Ratio
- The current ratio began at 1.58 in 2021, decreased to 1.28 in 2022, and then recovered to 1.57 in 2023. A slight decline to 1.52 was noted in 2024, followed by a more pronounced decrease to 1.23 in 2025. This suggests a potential increase in short-term obligations relative to current assets in the final year of the period.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio. It decreased from 1.35 in 2021 to 1.09 in 2022, increased to 1.37 in 2023, slightly decreased to 1.34 in 2024, and then declined to 1.01 in 2025. The quick ratio’s trend indicates a consistent ability to meet immediate obligations with the most liquid assets, but with a diminishing margin as the period progresses.
- Cash Ratio
- The cash ratio exhibited a decrease from 1.23 in 2021 to 0.98 in 2022, followed by a recovery to 1.26 in 2023 and a slight decrease to 1.22 in 2024. The most significant decline occurred in 2025, with the ratio falling to 0.88. This indicates a decreasing ability to cover current liabilities solely with cash and cash equivalents, particularly in the final year.
Overall, the observed trends suggest a moderate decline in liquidity across all three ratios from 2021 to 2025. While the company maintained liquidity above one for all ratios throughout the period, the decreasing values warrant monitoring to ensure continued ability to meet short-term obligations.
Current Ratio
Chipotle Mexican Grill Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 1,466,953) | 1,780,587) | 1,620,713) | 1,175,837) | 1,381,564) | |
| Current liabilities | 1,188,142) | 1,168,768) | 1,030,625) | 921,880) | 873,682) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.23 | 1.52 | 1.57 | 1.28 | 1.58 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | 1.69 | 1.66 | 1.86 | 1.95 | |
| Booking Holdings Inc. | — | 1.31 | 1.28 | 1.86 | 2.10 | |
| DoorDash, Inc. | — | 1.66 | 1.64 | 1.86 | 2.59 | |
| McDonald’s Corp. | — | 1.19 | 1.16 | 1.43 | 1.78 | |
| Starbucks Corp. | 0.72 | 0.75 | 0.78 | 0.77 | 1.20 | |
| Current Ratio, Sector | ||||||
| Consumer Services | — | 1.31 | 1.28 | 1.49 | 1.77 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | — | 1.22 | 1.20 | 1.15 | 1.25 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,466,953 ÷ 1,188,142 = 1.23
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then declining again. A review of the underlying components, current assets and current liabilities, provides further insight into these movements.
- Overall Trend
- The current ratio began at 1.58 in 2021, decreased to a low of 1.28 in 2022, recovered to 1.57 in 2023, slightly decreased to 1.52 in 2024, and then experienced a more pronounced decline to 1.23 in 2025. This suggests a weakening in the company’s short-term liquidity position towards the end of the analyzed period.
- 2021 to 2022
- The decrease from 2021 to 2022 was driven by a smaller percentage decrease in current assets (a decrease of 15.2%) compared to the percentage increase in current liabilities (a 5.5% increase). This indicates that liabilities were growing at a faster rate than assets during this period, putting downward pressure on the current ratio.
- 2022 to 2023
- The recovery observed from 2022 to 2023 was primarily due to a substantial increase in current assets (37.9%) while current liabilities increased at a slower pace (11.8%). This suggests improved short-term asset availability relative to immediate obligations.
- 2023 to 2025
- From 2023 to 2025, the current ratio declined. While current assets decreased (9.9% from 2023 to 2024 and then a further 17.4% from 2024 to 2025), current liabilities continued to increase, albeit at a slower rate (6.8% from 2023 to 2024 and 1.7% from 2024 to 2025). The combined effect of decreasing assets and increasing liabilities resulted in the observed decline in the current ratio.
The trend suggests a potential increase in short-term financial risk towards the end of the period. Continued monitoring of both current assets and current liabilities is recommended to understand the underlying drivers of these changes and their potential impact on the company’s ability to meet its short-term obligations.
Quick Ratio
Chipotle Mexican Grill Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 350,545) | 748,537) | 560,609) | 384,000) | 815,374) | |
| Accounts receivable, net | 156,466) | 143,963) | 115,535) | 106,880) | 99,599) | |
| Current investments | 698,591) | 674,378) | 734,838) | 515,136) | 260,945) | |
| Total quick assets | 1,205,602) | 1,566,878) | 1,410,982) | 1,006,016) | 1,175,918) | |
| Current liabilities | 1,188,142) | 1,168,768) | 1,030,625) | 921,880) | 873,682) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.01 | 1.34 | 1.37 | 1.09 | 1.35 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | 1.64 | 1.62 | 1.83 | 1.91 | |
| Booking Holdings Inc. | — | 1.24 | 1.20 | 1.73 | 2.00 | |
| DoorDash, Inc. | — | 1.41 | 1.38 | 1.54 | 2.33 | |
| McDonald’s Corp. | — | 0.90 | 1.03 | 1.24 | 1.64 | |
| Starbucks Corp. | 0.46 | 0.52 | 0.55 | 0.48 | 0.93 | |
| Quick Ratio, Sector | ||||||
| Consumer Services | — | 1.18 | 1.15 | 1.31 | 1.61 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | — | 0.91 | 0.86 | 0.81 | 0.93 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,205,602 ÷ 1,188,142 = 1.01
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then declining again. A review of the underlying components reveals insights into these movements.
- Overall Trend
- The quick ratio began at 1.35 in 2021, decreased to 1.09 in 2022, increased to 1.37 in 2023, remained relatively stable at 1.34 in 2024, and then decreased to 1.01 in 2025. This suggests a cyclical pattern with periods of strengthening and weakening short-term liquidity.
- Quick Asset Movement
- Total quick assets decreased from 2021 to 2022, falling from US$1,175,918 thousand to US$1,006,016 thousand. A subsequent increase was observed in 2023, reaching US$1,410,982 thousand, followed by a further increase to US$1,566,878 thousand in 2024. However, quick assets then decreased in 2025 to US$1,205,602 thousand. This variability in quick assets directly influences the quick ratio.
- Current Liability Movement
- Current liabilities demonstrated a consistent upward trend from 2021 to 2024, increasing from US$873,682 thousand to US$1,168,768 thousand. The rate of increase slowed in 2025, with current liabilities reaching US$1,188,142 thousand. The growth in current liabilities contributed to the initial decrease in the quick ratio and continued to exert downward pressure in later years.
- Ratio Dynamics
- The decrease in the quick ratio from 2021 to 2022 was primarily driven by a larger percentage decrease in quick assets compared to the increase in current liabilities. The subsequent improvement in 2023 was due to a more substantial increase in quick assets relative to current liabilities. The decline in 2025, despite relatively stable current liabilities, was a result of a decrease in quick assets.
The quick ratio in 2025, at 1.01, indicates that the entity possesses slightly more quick assets than current liabilities. While still above 1.0, this represents the lowest level of short-term liquidity observed during the analyzed period.
Cash Ratio
Chipotle Mexican Grill Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 350,545) | 748,537) | 560,609) | 384,000) | 815,374) | |
| Current investments | 698,591) | 674,378) | 734,838) | 515,136) | 260,945) | |
| Total cash assets | 1,049,136) | 1,422,915) | 1,295,447) | 899,136) | 1,076,319) | |
| Current liabilities | 1,188,142) | 1,168,768) | 1,030,625) | 921,880) | 873,682) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.88 | 1.22 | 1.26 | 0.98 | 1.23 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | 1.04 | 1.01 | 1.21 | 1.31 | |
| Booking Holdings Inc. | — | 1.03 | 0.95 | 1.46 | 1.79 | |
| DoorDash, Inc. | — | 1.25 | 1.23 | 1.38 | 2.13 | |
| McDonald’s Corp. | — | 0.28 | 0.67 | 0.68 | 1.17 | |
| Starbucks Corp. | 0.34 | 0.39 | 0.42 | 0.35 | 0.81 | |
| Cash Ratio, Sector | ||||||
| Consumer Services | — | 0.86 | 0.84 | 0.98 | 1.30 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | — | 0.52 | 0.48 | 0.47 | 0.64 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,049,136 ÷ 1,188,142 = 0.88
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before stabilizing and then declining again. A review of the underlying components reveals insights into these movements.
- Cash Ratio Trend
- The cash ratio began at 1.23 in 2021, indicating the company held $1.23 of cash for every $1 of current liabilities. It decreased to 0.98 in 2022, suggesting a reduced ability to cover immediate obligations with only cash and cash equivalents. The ratio recovered to 1.26 in 2023, demonstrating improved short-term solvency. A slight decrease to 1.22 was observed in 2024, followed by a more pronounced decline to 0.88 in 2025.
- Total Cash Assets
- Total cash assets decreased from $1,076,319 thousand in 2021 to $899,136 thousand in 2022. A subsequent increase to $1,295,447 thousand occurred in 2023, followed by a further rise to $1,422,915 thousand in 2024. However, cash assets decreased significantly to $1,049,136 thousand in 2025.
- Current Liabilities
- Current liabilities generally increased throughout the period. From $873,682 thousand in 2021, they rose to $921,880 thousand in 2022, $1,030,625 thousand in 2023, and $1,168,768 thousand in 2024. This upward trend continued into 2025, reaching $1,188,142 thousand.
The decrease in the cash ratio in 2025, despite a relatively stable level of current liabilities, is attributable to the substantial reduction in total cash assets during that year. The earlier fluctuations in the cash ratio were influenced by the combined effect of changes in both cash assets and current liabilities. The company’s ability to meet its short-term obligations with available cash diminished in 2025 compared to the preceding years.