Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Chipotle Mexican Grill Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Accounts payable	210,695)	197,646)	184,566)	163,161)	121,990)
Workers’ compensation liability	35,242)	30,520)	27,531)	27,456)	27,630)
Accrued payroll, bonuses and taxes	195,660)	170,251)	118,638)	107,799)	41,784)
Accrued employer payroll taxes, deferred pursuant to the CARES Act	—)	—)	—)	—)	70,812)
Other accrued payroll and benefits	31,011)	26,766)	24,287)	27,150)	62,828)
Accrued payroll and benefits	261,913)	227,537)	170,456)	162,405)	203,054)
Sales and use tax payable	47,206)	42,071)	35,567)	32,004)	26,419)
General, product and automobile insurance reserves	34,404)	30,169)	29,544)	48,098)	51,214)
Other accrued liabilities	98,137)	75,448)	82,428)	92,950)	87,016)
Accrued liabilities	179,747)	147,688)	147,539)	173,052)	164,649)
Unearned revenue	238,577)	209,680)	183,071)	156,351)	127,750)
Current operating lease liabilities	277,836)	248,074)	236,248)	218,713)	204,756)
Current liabilities	1,168,768)	1,030,625)	921,880)	873,682)	822,199)
Long-term operating lease liabilities	4,262,782)	3,803,551)	3,495,162)	3,301,601)	2,952,296)
Deferred income tax liabilities	46,208)	89,109)	98,623)	141,765)	149,422)
Other liabilities	71,070)	58,870)	43,816)	38,536)	38,844)
Long-term liabilities	4,380,060)	3,951,530)	3,637,601)	3,481,902)	3,140,562)
Total liabilities	5,548,828)	4,982,155)	4,559,481)	4,355,584)	3,962,761)
Preferred stock, $0.01 par value, no shares issued	—)	—)	—)	—)	—)
Common stock, $0.01 par value	13,586)	375)	373)	371)	367)
Additional paid-in capital	2,078,010)	1,956,160)	1,829,304)	1,729,312)	1,549,909)
Treasury stock, at cost	—)	(4,944,656)	(4,282,014)	(3,356,102)	(2,802,075)
Accumulated other comprehensive loss	(10,282)	(6,657)	(7,888)	(5,354)	(4,229)
Retained earnings	1,574,232)	6,056,985)	4,828,248)	3,929,147)	3,276,163)
Shareholders’ equity	3,655,546)	3,062,207)	2,368,023)	2,297,374)	2,020,135)
Total liabilities and shareholders’ equity	9,204,374)	8,044,362)	6,927,504)	6,652,958)	5,982,896)

Based on: 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), 10-K (reporting date: 2020-12-31).

The analysis of the annual financial data reveals several notable trends in the company's liabilities and shareholders' equity over the reported periods.

Current Liabilities: Current liabilities have shown a consistent upward trend, increasing from approximately US$822 million in 2020 to nearly US$1.17 billion in 2024. This growth is supported by rises in accounts payable, accrued payroll and benefits, sales and use tax payable, and unearned revenue. Notably, accrued payroll, bonuses, and taxes surged significantly, more than quadrupling between 2020 and 2024. Other accrued liabilities fluctuated but ended with a notable increase in 2024.
Long-Term Liabilities: Long-term liabilities have also increased steadily, rising from about US$3.14 billion in 2020 to approximately US$4.38 billion in 2024. The current and long-term operating lease liabilities represent the largest components of long-term liabilities, with significant growth in both items, especially long-term operating lease liabilities, which increased by over 40% within the five-year span. Deferred income tax liabilities, conversely, have declined markedly, dropping by nearly 70%, indicating possible changes in tax obligations or tax planning strategies.
Total Liabilities: The total liabilities correspondingly increased from nearly US$4 billion to approximately US$5.55 billion over the period, reflecting the combined rise in current and long-term obligations.
Shareholders’ Equity: Shareholders’ equity grew steadily from about US$2.02 billion in 2020 to around US$3.66 billion in 2024. Key contributors to this increase include additional paid-in capital and retained earnings. Additional paid-in capital showed a gradual increase year-over-year. Retained earnings surged significantly through 2023 but presented an unusual and substantial drop in 2024, which may indicate a considerable distribution, loss, or accounting adjustment in that year. Treasury stock, recorded as a negative value, increased in magnitude through 2023, implying ongoing share repurchases or other treasury stock transactions during this period. The common stock value remained relatively stable until an unexplained substantial increase in 2024, which could suggest a stock issuance or reclassification.
Other Equity Components: The accumulated other comprehensive loss increased in absolute terms, indicating a growing negative impact from items such as foreign currency translation adjustments or unrealized losses. This trend may indicate increased exposure to or volatility in these components.
Summary Insights: The overall financial position reflects a pattern of increasing liabilities, particularly operating lease commitments, alongside growing shareholders' equity. The consistent increase in current liabilities, especially accrued payroll-related liabilities, suggests expanding operational activity or changing workforce-related obligations. The declining deferred tax liabilities and increasing shareholders’ equity items highlight changes in tax positions and capitalization. Sudden changes in retained earnings and common stock in 2024 warrant further investigation to understand their causes and implications for the company’s financial health.

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Chipotle Mexican Grill Inc. (NYSE:CMG)

Balance Sheet: Liabilities and Stockholders’ Equity