Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Chipotle Mexican Grill Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	1,534,110)	1,228,737)	899,101)	652,984)	355,766)
Depreciation and amortization	335,030)	319,394)	286,826)	254,657)	238,534)
Deferred income tax provision (benefit)	(42,937)	(9,505)	(43,195)	(12,357)	108,350)
Impairment, closure costs, and asset disposals	24,582)	37,025)	20,738)	17,086)	28,874)
Provision for credit losses	215)	1,570)	(760)	493)	164)
Stock-based compensation expense	131,730)	124,016)	98,030)	176,392)	82,626)
Other	(3,472)	(13,080)	(16,202)	(4,599)	3,643)
Accounts receivable	(29,274)	(11,216)	(14,026)	(1,687)	3,010)
Inventory	(9,797)	(3,649)	(3,011)	(6,392)	(394)
Prepaid expenses and other current assets	9,244)	(39,211)	(14,660)	(26,826)	(11,442)
Operating lease assets	285,587)	254,241)	234,273)	223,837)	184,538)
Other assets	(17,690)	4,204)	(346)	3,993)	(26,577)
Accounts payable	8,467)	5,313)	18,208)	21,440)	(3,859)
Accrued payroll and benefits	34,857)	57,048)	9,864)	(44,555)	76,683)
Accrued liabilities	27,284)	3,188)	(27,964)	10,997)	5,596)
Unearned revenue	46,139)	35,685)	33,374)	34,387)	36,958)
Income tax payable/receivable	(14,363)	(5,237)	46,262)	193,379)	(255,251)
Operating lease liabilities	(217,894)	(214,477)	(207,186)	(207,164)	(165,154)
Other long-term liabilities	3,258)	9,431)	3,853)	(3,984)	1,782)
Changes in operating assets and liabilities	125,818)	95,320)	78,641)	197,425)	(154,110)
Adjustments to reconcile net income to net cash provided by operating activities	570,966)	554,740)	424,078)	629,097)	308,081)
Net cash provided by operating activities	2,105,076)	1,783,477)	1,323,179)	1,282,081)	663,847)
Purchases of leasehold improvements, property and equipment	(593,603)	(560,731)	(479,164)	(442,475)	(373,352)
Purchases of investments	(986,673)	(1,115,131)	(614,416)	(429,350)	(468,418)
Maturities of investments	722,637)	729,853)	263,548)	345,748)	419,078)
Proceeds from sale of equipment	20,113)	—)	—)	4,035)	—)
Acquisitions of equity method investments	—)	—)	—)	—)	(10,025)
Net cash used in investing activities	(837,526)	(946,009)	(830,032)	(522,042)	(432,717)
Repurchase of common stock	(1,001,559)	(592,349)	(830,140)	(466,462)	(54,401)
Tax withholding on stock-based compensation awards	(74,229)	(69,146)	(98,970)	(79,870)	(48,555)
Other financing activities	2,089)	843)	(294)	(2,274)	(1,895)
Net cash used in financing activities	(1,073,699)	(660,652)	(929,404)	(548,606)	(104,851)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,635)	381)	(1,007)	(1,039)	1,076)
Net change in cash, cash equivalents, and restricted cash	192,216)	177,197)	(437,264)	210,394)	127,355)
Cash, cash equivalents, and restricted cash at beginning of year	586,163)	408,966)	846,230)	635,836)	508,481)
Cash, cash equivalents, and restricted cash at end of year	778,379)	586,163)	408,966)	846,230)	635,836)

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 and patterns across the key financial metrics.

Profitability and Income

Net income displayed consistent and substantial growth over the periods, increasing from $355.8 million in 2020 to $1.53 billion by 2024, indicating strong and expanding profitability.

Non-Cash Expenses

Depreciation and amortization steadily increased from $238.5 million to $335 million, reflecting ongoing investment in assets and their amortization. Stock-based compensation expense showed fluctuations but generally increased, peaking in 2021 with $176.4 million before stabilizing around $130 million in later years.

Tax and Other Provisions

Deferred income tax provision fluctuated significantly, showing a benefit in later years with negative values (-$42.9 million in 2024), which could indicate deferred tax assets or changes in tax strategy. Provisions for credit losses remained relatively insignificant and mostly stable.

Asset and Liability Management

Operating lease assets and liabilities both grew steadily, consistent with long-term lease agreements expanding from $184.5 million to $285.6 million in assets, and lease liabilities increasing from negative $165.2 million to negative $217.9 million.

Accounts receivable and inventory showed negative values indicating possible write-downs or corrections, with accounts receivable declining significantly to -$29.3 million by 2024, and inventory also showing worsening negative figures.

Prepaid expenses and other current assets showed dramatic volatility, notably a large positive spike to $9.2 million in 2024 after negative trends in preceding years.

Accounts payable and accrued payroll and benefits fluctuated, with accrued payroll notably improving to $34.9 million from a negative balance earlier, suggesting improved management of employee-related liabilities.

Cash Flows

Net cash provided by operating activities demonstrated strong growth, nearly tripling from $663.8 million in 2020 to $2.1 billion in 2024, highlighting robust operational cash generation.

Investing activities consistently resulted in significant cash outflows, driven primarily by purchases of property and equipment and investments, indicating ongoing capital expenditures and investment purchases. Despite this, maturities of investments partly offset outflows.

Financing activities also tended to be cash outflows, dominated by the substantial repurchase of common stock increasing to over $1 billion by 2024, reflecting active capital return to shareholders.

Liquidity

Cash, cash equivalents, and restricted cash balances saw significant fluctuations, with a steep decrease in 2022 from $846.2 million to $409 million followed by recovery reaching $778.4 million by the end of 2024, showing fluctuations likely related to investing and financing decisions along with operating cash flow strength.

Overall, the data depicts a company with growing profitability and cash generation, actively investing in capital assets and returning capital to shareholders through stock repurchases. Some volatility in tax provisions, current assets, and liabilities suggests ongoing adjustments in financial structuring and working capital management.

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Chipotle Mexican Grill Inc. (NYSE:CMG)

Cash Flow Statement