Chipotle Mexican Grill Inc. (NYSE:CMG)

The investment activity ratios demonstrate generally stable performance with some notable shifts over the observed period. The ratios indicate how efficiently assets are being utilized to generate sales. A consistent pattern of slight increases followed by plateaus or minor declines is apparent across several metrics.

Net Fixed Asset Turnover

This ratio exhibits a gradual upward trend from 4.40 in March 2022 to a peak of 4.73 in September 2024. Subsequently, a slight decline is observed, reaching 4.45 by December 2025. The overall trend suggests increasing efficiency in utilizing fixed assets to generate revenue, although the most recent quarters indicate a potential stabilization or minor decrease in this efficiency.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

A similar upward trajectory is seen in this ratio, increasing from 1.59 in March 2022 to 1.77 in December 2024. A subsequent decrease is noted, falling to 1.67 by December 2025. This suggests that the inclusion of operating lease obligations and right-of-use assets also demonstrates increasing efficiency, but with a recent softening in performance. The values are considerably lower than the standard net fixed asset turnover, indicating a significant portion of assets are tied to these lease obligations.

Total Asset Turnover

The total asset turnover ratio shows a more subdued pattern. It increases modestly from 1.21 in March 2022 to 1.27 in March 2023, then fluctuates between 1.21 and 1.25 for several quarters. A noticeable increase is observed in December 2025, reaching 1.33. This indicates a generally stable utilization of all assets, with a recent improvement in efficiency. The fluctuations suggest sensitivity to changes in asset composition or sales levels.

Equity Turnover

This ratio experiences a more pronounced decline and subsequent recovery. It decreases from 3.67 in March 2022 to a low of 2.87 in June 2023. A recovery is then observed, culminating in a value of 4.21 in December 2025. This suggests a period of reduced sales relative to equity, followed by a significant improvement. The substantial increase in the most recent quarter indicates a more effective utilization of shareholder equity to generate sales.

In summary, the ratios generally indicate efficient asset utilization, with a recent trend towards stabilization or slight decline in fixed asset turnover and a notable improvement in equity turnover. The fluctuations observed across all ratios warrant continued monitoring to assess the sustainability of these trends.

The net fixed asset turnover ratio exhibits a generally positive trend over the observed period, with some fluctuations. Initially, the ratio demonstrates modest growth from 4.40 in March 2022 to 4.50 in September 2022, before experiencing a slight decline to 4.43 by December 2022. Subsequent quarters show a consistent upward trajectory, peaking at 4.73 in June 2023 and remaining at that level through December 2023. A slight decrease is then observed, falling to 4.71 in March 2024, followed by a further decline to 4.45 by December 2025.

Overall Trend

The ratio generally increased from March 2022 to December 2023, indicating improving efficiency in generating revenue from fixed assets. However, the ratio has decreased in the most recent quarters, suggesting a potential decline in asset utilization efficiency.

Short-Term Fluctuations

Minor fluctuations are present throughout the period. The dip in December 2022 could be attributable to seasonal factors or temporary changes in revenue or asset base. The consistent values in June and December 2023 suggest a period of relative stability in asset utilization.

Recent Performance (2024-2025)

The ratio’s decline from 4.73 in December 2023 to 4.45 in December 2025 warrants further investigation. This decrease could be due to increased investment in fixed assets without a corresponding increase in revenue, or a slowdown in revenue growth. The consistent increase in net fixed assets alongside a relatively stable revenue in the last four quarters suggests the latter is more likely.

Revenue and Asset Relationship

Revenue generally increased over the period, but the rate of increase in revenue has not consistently outpaced the rate of increase in net fixed assets, particularly in the latter half of the observed timeframe. This relationship is reflected in the recent decline of the net fixed asset turnover ratio.

The net fixed asset turnover ratio, incorporating operating leases and right-of-use assets, demonstrates a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations exist, the ratio indicates improving efficiency in generating revenue from the company’s fixed asset base.

Overall Trend

From a value of 1.59 in March 2022, the ratio generally increased, reaching a peak of 1.77 in June 2024 and December 2024. The latter half of the period shows a slight decline, concluding at 1.67 in December 2025, though remaining above the initial value.

Short-Term Fluctuations (2022-2023)

The period between March 2022 and December 2022 exhibits a steady, incremental increase, moving from 1.59 to 1.64. This suggests consistent improvement in asset utilization during this timeframe. The first half of 2023 continues this trend, peaking at 1.70 in June 2023, before experiencing a slight decrease in the subsequent quarters.

Peak Performance (2024)

2024 represents a period of peak performance for the ratio. It consistently remains above 1.70, reaching 1.77 in both June and December. This indicates a strong correlation between revenue generation and fixed asset investment during this period. The increase suggests effective management of assets and potentially successful expansion or optimization of existing locations.

Recent Decline (2025)

The final year observed shows a modest decline from the highs of 2024. The ratio decreases from 1.76 in March 2025 to 1.67 in December 2025. While a decline, the ratio remains relatively stable and still indicates a healthy level of asset utilization. This decrease warrants further investigation to determine if it is attributable to temporary factors or a shift in underlying business dynamics.

In summary, the net fixed asset turnover ratio demonstrates a positive trajectory overall, with a recent stabilization after a period of strong growth. The company appears to be effectively leveraging its fixed assets to generate revenue, although the slight decline in the most recent period merits continued monitoring.

The total asset turnover ratio for the analyzed period demonstrates a generally stable pattern with some fluctuation. Initially, the ratio exhibited a slight increase from 1.21 in the first quarter to 1.24 in the second quarter of 2022. This was followed by a minor decrease to 1.23 in the third quarter, before rising again to 1.25 in the fourth quarter of 2022.

Overall Trend

Throughout 2023, the ratio remained relatively consistent, fluctuating between 1.21 and 1.27. A slight downward trend was observed in the first half of 2024, decreasing from 1.21 to 1.20. However, the ratio showed a notable increase in the latter half of 2024 and into 2025, culminating in a value of 1.33 in the final quarter.

The period between March 31, 2022, and December 31, 2023, saw the ratio remain within a narrow band, suggesting consistent efficiency in utilizing assets to generate revenue. The increase observed in the final quarter of 2024 and continuing into 2025 indicates a potential improvement in asset utilization. This could be attributed to increased sales volume, more efficient asset management, or a combination of both.

Revenue and Asset Relationship

Revenue generally increased over the analyzed period, with some quarterly variations. Total assets also increased consistently, but the asset turnover ratio’s fluctuations suggest that revenue growth did not always perfectly correlate with asset growth. The recent increase in the ratio, despite continued asset growth, suggests a more effective deployment of assets to generate sales.

The highest recorded ratio of 1.33 in the final quarter of 2025 represents the most efficient asset utilization within the observed timeframe. The lowest ratio of 1.20 was recorded in June 30, 2024. These values provide benchmarks for assessing future performance and identifying potential areas for improvement in asset management.

Quarterly Variations

The ratio appears to be somewhat sensitive to seasonal or cyclical factors, as evidenced by the quarterly fluctuations. Further investigation into the underlying drivers of these variations may provide valuable insights into the business’s operational dynamics.

The equity turnover ratio for the analyzed period demonstrates a generally declining trend, punctuated by some quarterly fluctuations. Initially, the ratio exhibited relative stability before a more pronounced decrease in later periods. This suggests a changing relationship between revenue generation and the company’s equity base.

Overall Trend

From March 31, 2022, to December 31, 2025, the equity turnover ratio decreased from 3.67 to 4.21. While there were interim increases, the overall trajectory indicates a diminishing efficiency in generating revenue relative to shareholder equity. The most significant decline occurred between March 31, 2024, and December 31, 2025.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The ratio remained relatively stable during this period, fluctuating between 3.62 and 3.78. This suggests consistent performance in utilizing equity to generate revenue during these quarters. There was a slight increase from the first to the second quarter, followed by a minor decrease.

Transition Period (Mar 31, 2023 – Dec 31, 2023)

A noticeable downward trend began in this period. The ratio decreased from 3.62 in March 2023 to 3.22 in December 2023. This decline suggests that the company was generating less revenue for each dollar of equity invested, potentially indicating increased operational inefficiencies or a shift in capital structure.

Recent Period (Mar 31, 2024 – Dec 31, 2025)

The decline continued, with the ratio reaching 2.87 in June 2024 before experiencing some volatility. However, the ratio concluded the analyzed period at 4.21 in December 2025, representing a substantial increase from the low point in June 2024. This recent increase could be attributed to a surge in revenue, a reduction in equity, or a combination of both. Further investigation would be needed to determine the underlying cause.

The fluctuations in the equity turnover ratio warrant further investigation. While a decreasing ratio isn’t inherently negative, it signals a potential shift in the company’s operational efficiency or capital management strategies. The significant increase in the final quarter suggests a recent change in these dynamics that requires additional scrutiny.