Chipotle Mexican Grill Inc. (NYSE:CMG)

The analysis of the current assets and adjusted current assets over the five-year period reveals notable fluctuations with an overall positive trend towards the final years.

Current Assets

There is a slight decline from 1,420,237 thousand US$ in 2020 to 1,381,564 thousand US$ in 2021, indicating a marginal reduction in liquid resources or short-term assets available at the end of the year.

The downward trend continues more significantly in 2022 with current assets decreasing to 1,175,837 thousand US$, marking a notable contraction in short-term asset holdings.

However, a strong recovery is observed in 2023, as current assets increase markedly to 1,620,713 thousand US$, surpassing the levels seen in the initial years, suggesting improved liquidity or accumulation of short-term assets.

This growth persists into 2024, where current assets further rise to 1,780,587 thousand US$, reinforcing an enhancing position in short-term financial strength.

Adjusted Current Assets

The pattern mirrors that of current assets, with adjusted current assets slightly higher at each corresponding date, likely reflecting certain adjustments or reclassifications that increase the reported figure.

The values decline from 1,421,825 thousand US$ in 2020 to 1,383,514 thousand US$ in 2021, followed by a more pronounced drop to 1,177,017 thousand US$ in 2022.

Subsequent years show recovery with adjusted current assets rising to 1,623,455 thousand US$ in 2023 and further to 1,783,540 thousand US$ in 2024, indicating a strengthening short-term asset base.

Overall, both current assets and adjusted current assets experienced a downturn in the early part of the timeline, reaching their lowest levels in 2022, before recovering sharply in the last two years. This suggests an initial period of tight short-term liquidity or asset reduction, followed by a strategic rebuild or improvement in working capital positions, which could indicate enhanced operational efficiency or improved cash flow management in the most recent years.

Total assets

The total assets of the company have shown a consistent upward trend over the five-year period. Beginning at approximately 5.98 billion US dollars at the end of 2020, the assets increased to about 6.65 billion in 2021, then to roughly 6.93 billion in 2022. This growth accelerated in the following years, reaching approximately 8.04 billion in 2023 and further rising to about 9.20 billion by the end of 2024. This continuous increase suggests ongoing investment and expansion of the company's asset base.

Adjusted total assets

The adjusted total assets follow a pattern closely aligned with the reported total assets, indicating consistent adjustments that are minor relative to the overall asset value. Starting slightly above 5.98 billion US dollars in 2020, the figures advanced steadily each year, reaching approximately 6.65 billion in 2021, about 6.93 billion in 2022, around 8.05 billion in 2023, and nearly 9.21 billion by the end of 2024. The close proximity of adjusted to total assets suggests minimal discrepancies or revaluations impacting the assets.

Current Liabilities

Current liabilities have shown a consistent upward trend over the five-year period. Starting at approximately 822 million USD in 2020, they increased steadily each year, reaching nearly 1.17 billion USD by the end of 2024. This represents a total growth of around 42% over the period. The year-on-year increments suggest growing short-term obligations, which could be indicative of increased operational scale or changes in working capital management.

Adjusted Current Liabilities

Adjusted current liabilities also exhibit a rising trend, though at a slightly more moderate pace compared to unadjusted current liabilities. Beginning at roughly 694 million USD in 2020, adjusted liabilities rose each year to about 930 million USD by 2024. This increase of approximately 34% over the five years indicates that after adjustments, the company's immediate liabilities are increasing but potentially at a somewhat tempered rate relative to the raw current liabilities figures.

Comparative Insights

The difference between current liabilities and adjusted current liabilities widens over time. In 2020, adjusted liabilities were about 84% of total current liabilities, whereas by 2024, they constitute roughly 80%. This declining proportion points to either greater adjustments being made to the reported current liabilities or changes in the classification or recognition of liabilities. Overall, both measures demonstrate an expanding short-term liability base, emphasizing the need to monitor liquidity and working capital strategies.

Total liabilities

The total liabilities of the company have demonstrated a consistent upward trend over the observed five-year period. Starting from approximately 3.96 billion USD at the end of 2020, liabilities increased each year, reaching about 5.55 billion USD by the end of 2024. The growth rate appears steady, indicating an ongoing accumulation of obligations or financial commitments.

Adjusted total liabilities

The adjusted total liabilities also show a similar increasing pattern, rising from roughly 3.69 billion USD in 2020 to approximately 5.26 billion USD in 2024. This parallel progression suggests that the adjustments made to liabilities maintain a consistent proportion relative to the total liabilities. The gap between total and adjusted liabilities widens gradually, which may reflect increasing adjustments or reclassifications in the company’s reported liabilities.

General observations

Overall, both total and adjusted liabilities exhibit steady growth year over year, which could imply increasing financing activities, expansion strategies, or rising operational costs that require additional liabilities. The steady upward movement without any abrupt spikes or declines suggests a controlled and managed increase in liabilities over the period analyzed.

The data reveals a consistent upward trend in both shareholders’ equity and adjusted shareholders’ equity over the analyzed five-year period.

Shareholders’ equity

There has been a steady increase from 2,020,135 thousand US dollars at the end of 2020 to 3,655,546 thousand US dollars by the end of 2024. This marks an overall growth of approximately 81%, indicating a strengthening financial base and increased net asset value attributable to shareholders. The most notable acceleration in growth occurred between 2022 and 2024, where the equity rose by nearly 30%, suggesting enhanced profitability or capital raising during this period.

Adjusted shareholders’ equity

Adjusted shareholders’ equity also shows a positive trajectory, rising from 2,298,895 thousand US dollars in 2020 to 3,943,284 thousand US dollars by 2024. This figure consistently remains higher than the reported shareholders’ equity, which could imply adjustments for items such as unrealized gains, reserves, or other comprehensive income components. The increase over five years, approximately 71%, similarly reflects expansion in the company’s adjusted financial strength and potential intrinsic value.

Overall, the parallel growth in both shareholders’ equity measures suggests a robust upward movement in the company’s capital structure and retained earnings, supporting a favorable outlook on its financial stability and investment potential during this period.

The financial data reveals several notable trends in the adjustments and growth of capital and equity involving the subject entity over the period from 2020 to 2024.

Shareholders’ Equity

There is a consistent year-over-year increase in shareholders’ equity, rising from 2,020,135 thousand US dollars in 2020 to 3,655,546 thousand US dollars in 2024. This indicates steady growth in the net assets owned by shareholders.

Total Reported Capital

Mirroring the shareholders’ equity, total reported capital matches these figures exactly for all years, suggesting that, according to reported data, the capital structure is predominantly composed of shareholders’ equity without material reported debt.

Adjusted Total Debt

The adjusted total debt shows a clear upward trend, increasing from 3,157,052 thousand US dollars in 2020 to 4,540,618 thousand US dollars in 2024. This suggests a rising reliance on debt financing over the observed period.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity also increases steadily, from 2,298,895 thousand US dollars in 2020 to 3,943,284 thousand US dollars in 2024, consistent with the pattern observed in reported equity but at slightly higher levels, reflecting potential adjustments for more comprehensive equity representation.

Adjusted Total Capital

Adjusted total capital grows significantly from 5,455,947 thousand US dollars in 2020 to 8,483,902 thousand US dollars in 2024, representing the sum of adjusted equity and adjusted debt. This growth highlights an overall expansion in the company's capital base, driven by increases in both debt and equity components.

Overall, the data indicates a balanced growth strategy with rising equity and increasing debt, resulting in a substantial increase in total capital. The adjusted figures suggest more detailed financial adjustments that reveal a larger capital structure than the reported figures alone. The growing adjusted debt alongside increased adjusted equity implies that the company is employing a combination of financing sources to support its expansion or operations over the five-year period.

The financial data indicates a consistent upward trend in both revenue and adjusted revenue over the five-year period analyzed.

Revenue

The revenue shows a steady increase annually from 5,984,634 thousand USD in 2020 to 11,313,853 thousand USD in 2024. This growth reflects a compound annual growth rate (CAGR) of approximately 18% over the period, indicating strong business expansion and increased sales performance year over year.

Adjusted Revenue

The adjusted revenue follows a similar trajectory, rising from 6,017,189 thousand USD in 2020 to 11,342,750 thousand USD in 2024. The close alignment between revenue and adjusted revenue values suggests consistency in adjustments made, implying that non-recurring items or accounting adjustments had a relatively stable and minor influence on overall revenue figures throughout the period.

Overall, the company demonstrates solid and continuous revenue growth across the observed years, with no apparent anomalies or fluctuations that break the upward trend. This positive pattern likely reflects successful operational strategies, market expansion, or product/service demand increases contributing effectively to sustained financial growth.

Net income

There is a consistent and substantial upward trend in net income over the five-year period. Starting at approximately $355.8 million in 2020, net income nearly doubled to about $653.0 million in 2021. This growth continued steadily, reaching $899.1 million in 2022, $1.23 billion in 2023, and further increasing to $1.53 billion in 2024. The pattern indicates strong profitability improvements year over year.

Adjusted net income

Adjusted net income also demonstrates a positive trajectory over the same period, although starting at a higher base relative to reported net income. It began at $492.4 million in 2020, increased significantly to $661.0 million in 2021, and maintained momentum with $882.8 million in 2022. The adjusted figures surpassed $1.24 billion in 2023 and continued the upward movement, reaching approximately $1.51 billion by the end of 2024. The adjustments appear to moderate the reported net income figures but still reflect consistent growth.

Comparative insights

Both net income and adjusted net income have shown robust growth through the period under review. Notably, adjusted net income figures are consistently higher than reported net income each year, suggesting that the adjustments add back certain expenses or losses that do not impact cash profitability. The narrowing gap in recent years between the two measures indicates that either fewer adjustments were required or the effects of those adjustments became less significant as earnings grew.