Chipotle Mexican Grill Inc. (NYSE:CMG)

Total Asset Turnover

The reported total asset turnover ratio shows a steady increase from 1 in 2020 to 1.25 in 2022, followed by a slight decline to 1.23 in 2023 and stabilization at this level through 2024. The adjusted total asset turnover follows a very similar pattern, starting at 1.01 in 2020 and reaching 1.25 in 2022, then slightly decreasing and leveling off at 1.23 by 2023 and 2024. This indicates an improvement in asset efficiency up to 2022, with consistency thereafter.

Current Ratio

The reported current ratio declines from 1.73 in 2020 to 1.28 in 2022, signaling a reduction in short-term liquidity, but then rebounds to 1.57 in 2023 and slightly decreases to 1.52 in 2024. The adjusted current ratio starts higher at 2.05 in 2020, decreases to 1.59 in 2022, and increases again to 1.98 in 2023 followed by a mild decrease to 1.92 in 2024. Overall, liquidity fluctuates, with a dip in 2022 and recovery in subsequent years.

Debt to Equity

Reported debt to equity data is unavailable. The adjusted debt to equity ratio remains relatively stable from 1.37 in 2020 to 1.41 in 2022, then decreases noticeably to 1.20 in 2023 and further to 1.15 in 2024. This trend suggests a gradual reduction in reliance on debt financing relative to equity after 2022.

Debt to Capital

Reported debt to capital data is not provided. The adjusted debt to capital ratio is stable at 0.58 between 2020 and 2022, then declines to 0.55 in 2023 and 0.54 in 2024. This indicates a slight decrease in debt proportion within the company’s capital structure in the later years.

Financial Leverage

Reported financial leverage ratio decreases gradually from 2.96 in 2020 to 2.52 in 2024, indicating a declining use of leverage over time. The adjusted financial leverage ratio aligns with this trend, dropping from 2.6 in 2020 to 2.33 in 2024, which reflects a consistent lowering of leverage risk.

Net Profit Margin

The reported net profit margin exhibits a continuous upward trend, rising from 5.94% in 2020 to 13.56% in 2024, showing improved profitability. The adjusted net profit margin follows a similar path, increasing from 8.18% in 2020 to 13.33% in 2024, indicating enhanced operational efficiency and cost management.

Return on Equity (ROE)

The reported ROE shows significant growth from 17.61% in 2020 to 41.97% in 2024, reflecting strong shareholder returns. The adjusted ROE increases from 21.42% in 2020 to 38.35% in 2024, corroborating this trend and suggesting that improved profitability and asset utilization contribute to shareholder value creation.

Return on Assets (ROA)

Reported ROA improves steadily from 5.95% in 2020 to 16.67% in 2024, indicating enhanced effectiveness in asset utilization. The adjusted ROA consistently rises from 8.23% in 2020 to 16.42% in 2024, supporting the observation of better asset performance over time.

Revenue Trends

The revenue demonstrates a consistent upward trend over the five-year period. Starting at approximately $5.98 billion in 2020, it increased steadily each year, reaching roughly $11.31 billion by the end of 2024. This represents an overall growth of nearly 89%, indicating strong expansion in the company's sales or service operations.

Total Assets Development

Total assets have also shown continual growth throughout the analyzed years. From about $5.98 billion in 2020, assets rose to around $9.20 billion by 2024. This growth correlates with the revenue increase, suggesting ongoing investment or acquisition of assets supporting the company's operational capacity.

Total Asset Turnover Analysis

The reported total asset turnover ratio, which measures how efficiently the company uses its assets to generate revenue, improved from 1.00 in 2020 to 1.25 in 2022. After peaking at 1.25, it stabilized slightly lower but maintained a strong level around 1.23 in 2023 and 2024. This indicates enhanced and sustained efficiency in asset usage over the period.

Adjusted Figures Evaluation

Adjusted revenue values closely mirror the reported revenue figures, confirming the initial observations of steady growth. Similarly, adjusted total assets track very closely with reported total assets, showing consistent asset growth. The adjusted total asset turnover ratio follows the same pattern as the reported ratio, further verifying a trend of improved and stable asset efficiency.

Overall Financial Performance Insights

The data indicates a company experiencing robust revenue growth accompanied by an expanding asset base. The improvement and stabilization of the total asset turnover ratio denote effective utilization of assets in generating sales. These patterns suggest operational improvements and possibly successful strategic initiatives contributing to scaled growth without compromising asset efficiency.

The data reveals notable fluctuations in the liquidity position over the five-year period. Current assets decreased from 1,420,237 thousand US dollars in 2020 to 1,175,837 thousand US dollars in 2022, followed by a robust recovery to 1,780,587 thousand US dollars by 2024. This pattern suggests a temporary contraction in liquid resources, with a subsequent expansion aligning with possible operational or strategic shifts.

Current liabilities show a steady upward trend, increasing each year from 822,199 thousand US dollars in 2020 to 1,168,768 thousand US dollars in 2024. This consistent rise indicates growing short-term obligations, which may reflect increased operational scale or financing activities.

The reported current ratio, which measures the ability to cover current liabilities with current assets, declined from 1.73 in 2020 to 1.28 in 2022, indicating a weakening liquidity position during this period. The ratio improved thereafter, reaching 1.52 in 2024, though it remained modestly below the initial 2020 level. This suggests gradual restoration of liquidity but some remaining pressure on short-term financial flexibility.

Adjusted current assets and liabilities, which likely account for specific reclassifications or refinements, follow a similar trajectory. Adjusted current assets declined until 2022 and then rose sharply by 2024. Adjusted current liabilities consistently increased but at a slower pace compared to unadjusted figures.

The adjusted current ratio shows a higher level than the reported ratio across all years, starting at 2.05 in 2020, dropping to 1.59 in 2022, and improving to 1.92 in 2024. This suggests that after adjustments, the liquidity position appears stronger, indicating that certain liabilities or assets are classified in a way that affects the raw ratio.

Overall, the analysis highlights a period of liquidity tightening around 2022, followed by recovery through 2024. The company faces steadily increasing current liabilities but has managed to enhance its adjusted liquidity ratio, implying better-than-surface-level short-term financial health. Continued monitoring of liability trends will be crucial, as rising obligations may pose challenges if asset growth slows.

Shareholders' Equity

Shareholders' equity showed a consistent upward trend over the periods analyzed, rising from approximately 2.02 billion US dollars at the end of 2020 to about 3.66 billion US dollars by the end of 2024. The growth accelerated notably between 2022 and 2024.

Adjusted Total Debt

Adjusted total debt increased steadily throughout the years, from roughly 3.16 billion US dollars in 2020 to approximately 4.54 billion US dollars in 2024. The year-over-year increases were relatively stable, indicating ongoing borrowing or debt adjustments.

Adjusted Shareholders' Equity

The adjusted shareholders' equity also trended upwards from around 2.30 billion US dollars in 2020 to nearly 3.94 billion US dollars in 2024. This metric grew consistently, mirroring the growth in reported shareholders' equity but on a slightly larger scale, indicating potential adjustments that increase recognized equity values.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio displayed a moderate downward trend overall, beginning at 1.37 in 2020, maintaining a similar level in 2021 at 1.36, and peaking slightly at 1.41 in 2022. After 2022, there was a significant decline to 1.20 in 2023 and further to 1.15 in 2024. This pattern suggests improved financial leverage, reflecting that equity growth outpaced growth in adjusted debt during the latter years.

Absence of Data for Total Debt and Reported Debt to Equity

Data for total debt and reported debt to equity ratio were not available, preventing a comprehensive analysis of the company's nominal debt position and traditional debt leverage measures. However, adjusted figures provide a suitable proxy for understanding debt dynamics and leverage trends.

The financial data reveals several notable trends over the five-year period from 2020 to 2024.

Capital Structure

The reported total capital has shown consistent growth, increasing from approximately 2.02 billion USD in 2020 to around 3.66 billion USD in 2024. This steady upward trend indicates an expansion or strengthening of the company’s capital base over the years.

Adjusted Debt and Capital

The adjusted total debt also increased gradually from about 3.16 billion USD in 2020 to nearly 4.54 billion USD in 2024. Similarly, adjusted total capital rose from roughly 5.46 billion USD in 2020 to approximately 8.48 billion USD in 2024. Both metrics demonstrate an overall expansion in the company’s financing and resources, suggesting increased leverage and asset growth.

Debt to Capital Ratio

The adjusted debt to capital ratio remained stable at 0.58 during the initial three years (2020-2022), indicating a consistent proportion of debt relative to total capital. From 2023 onward, this ratio decreased to 0.55 and further to 0.54 in 2024. This declining trend signals a gradual reduction in reliance on debt financing relative to the capital base, presumably reflecting a shift toward a more balanced or equity-oriented capital structure.

Missing Data

Reported debt and reported debt to capital data were not provided, which limits the comparative analysis between reported and adjusted figures. Nevertheless, the adjusted metrics provide meaningful insight into the financial leverage and capital composition over time.

Overall, the data suggests that the company has progressively increased its capital base and total financing over the last five years, while slightly improving its debt structure by reducing the proportion of debt relative to total capital from 2023 onward.

Total Assets

Total assets demonstrate a consistent upward trend over the five-year period, growing from approximately $5.98 billion in 2020 to about $9.20 billion in 2024. This indicates a steady expansion in the company's asset base, with notable acceleration particularly in the years 2022 to 2024.

Shareholders’ Equity

Shareholders’ equity also shows a clear increasing pattern, rising from around $2.02 billion in 2020 to $3.66 billion by the end of 2024. The growth pace quickens significantly after 2022, suggesting enhanced retained earnings or equity injections that strengthen the company's net asset position.

Reported Financial Leverage

The reported financial leverage ratio exhibits a gradual decline from 2.96 in 2020 to 2.52 in 2024. This downward trend indicates a reduction in reliance on debt relative to equity, reflecting improved financial stability or deleveraging efforts over the time frame.

Adjusted Total Assets

Adjusted total assets follow a very similar upward trajectory to reported total assets, increasing from about $5.98 billion in 2020 to nearly $9.21 billion in 2024. The close correlation between reported and adjusted figures suggests consistent valuation adjustments without significant variance across years.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity grows from roughly $2.30 billion in 2020 to almost $3.94 billion in 2024, maintaining an increasing pattern analogous to reported equity but at slightly higher values. This indicates that adjustments have positively impacted equity valuation, enhancing the perceived net worth of the company.

Adjusted Financial Leverage

Adjusted financial leverage decreases from 2.60 in 2020 to 2.33 in 2024, mirroring the downward trend seen in the reported leverage ratio. This decline signals an ongoing reduction in leverage when accounting for adjustments, supporting the narrative of improved capital structure and reduced financial risk.

Revenue Trends

The revenue of the company demonstrated consistent growth over the observed five-year period. Starting at $5,984,634 thousand in 2020, revenue increased each year, reaching $11,313,853 thousand by 2024. This represents an overall increase of nearly 89%, indicating strong top-line expansion.

Net Income Trends

Net income showed a marked upward trajectory, rising from $355,766 thousand in 2020 to $1,534,110 thousand in 2024. The growth was significant each year, with the company more than quadrupling its net income during the period. This indicates effective cost management and improved profitability alongside revenue growth.

Reported Net Profit Margin

The reported net profit margin percentage consistently improved, moving from 5.94% in 2020 to 13.56% in 2024. This steady increase suggests enhanced operational efficiency and profitability relative to revenue, reflecting better control of expenses or more favorable pricing power.

Adjusted Net Income and Revenue

Adjusted figures, which likely exclude one-time items or extraordinary costs, show a similar upward pattern. Adjusted net income rose from $492,407 thousand in 2020 to $1,512,262 thousand in 2024, while adjusted revenue increased from $6,017,189 thousand to $11,342,750 thousand. The adjusted figures confirm the strong operational performance over the years.

Adjusted Net Profit Margin

The adjusted net profit margin also increased significantly from 8.18% in 2020 to 13.33% in 2024. The margins track closely to the reported ones but start at a higher base, indicating that adjustments remove items negatively impacting profitability. The improvement over time further supports the conclusion of improved efficiency and profitability.

Overall Insights

The data illustrates a company experiencing robust revenue growth accompanied by even stronger growth in net income and profit margins. Both reported and adjusted metrics confirm that profitability has improved, reflecting better cost management and operational leverage. The rising net profit margins alongside consistent revenue increases suggest increasing sustainability of earnings growth.

Net Income

Net income has exhibited a consistent and significant upward trend from 2020 to 2024. Starting at $355.8 million in 2020, it nearly doubled by 2021 and continued to grow steadily, reaching approximately $1.53 billion by 2024. This indicates strong profitability growth over the five-year period.

Shareholders’ Equity

Shareholders’ equity has also shown steady growth throughout the period. Beginning at about $2.02 billion in 2020, it increased to roughly $3.67 billion in 2024. This growth suggests the company has been able to retain earnings and possibly increase capital, supporting its expanding operations and financial strength.

Reported Return on Equity (ROE)

The reported ROE demonstrates a significant improvement in the company’s efficiency in generating profits from shareholders’ equity. It rose sharply from 17.61% in 2020 to 41.97% in 2024. This trend reflects enhanced profitability relative to equity, indicating stronger management effectiveness or favorable operational conditions.

Adjusted Net Income

Adjusted net income follows a similar upward trajectory as net income, growing from approximately $492.4 million in 2020 to about $1.51 billion in 2024. The adjustments appear to reduce volatility or one-time effects, yet still indicate robust growth and improving earnings quality over time.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity has increased steadily from $2.3 billion in 2020 to nearly $3.94 billion in 2024. This adjusted figure remains higher than the reported equity, suggesting that adjustments account for additional factors affecting equity valuation, yet maintain a consistent growth pattern.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE shows an improving trend analogous to the reported ROE, rising from 21.42% in 2020 to 38.35% in 2024. This indicates that when removing certain adjustments, the company still demonstrates increasing effectiveness in generating profits from equity.

Overall Insights

The data collectively point to a company experiencing strong financial growth, improving profitability, and enhanced capital efficiency over the five-year period. Both net income and shareholders’ equity have increased substantially, accompanied by rising returns on equity in both reported and adjusted terms. The adjusted figures suggest that underlying performance remains strong when accounting for non-recurring or other adjustments, indicating sustainable growth patterns.

Net Income

The net income has demonstrated a consistent and significant upward trajectory over the five-year period. Beginning at approximately $356 million in 2020, it more than quadrupled by 2024, reaching over $1.53 billion. This steady increase reflects enhanced profitability and operational efficiency.

Total Assets

Total assets have also exhibited steady growth, rising from roughly $5.98 billion in 2020 to over $9.20 billion in 2024. This growth indicates ongoing investment, expansion, and possibly acquisitions, contributing to the solid asset base of the entity.

Reported Return on Assets (ROA)

The reported ROA has shown a marked improvement, moving from 5.95% in 2020 to 16.67% in 2024. This upward trend underscores increasing effectiveness in utilizing assets to generate profits, with a nearly threefold increase during the period analyzed.

Adjusted Net Income

The adjusted net income follows a similar pattern to the reported net income, increasing from approximately $492 million in 2020 to about $1.51 billion in 2024. The adjustment narrows the gap with reported net income over time, suggesting that the adjustments are becoming less impactful or that reported earnings are aligning closer with adjusted figures.

Adjusted Total Assets

Adjusted total assets marginally exceed reported total assets but follow a parallel growth trend, increasing from about $5.98 billion in 2020 to over $9.20 billion in 2024. The close alignment with reported figures suggests consistency in asset valuation after adjustments.

Adjusted Return on Assets (ROA)

Adjusted ROA demonstrates a consistent rise, escalating from 8.23% in 2020 to 16.42% in 2024. This indicates improved efficiency when factoring in adjusted net income and asset values, with the increase reflecting enhanced asset utilization and profitability.

Overall Trends and Insights

The data reveals strong financial growth and improved performance metrics across all key indicators over the five-year span. Both net income and adjusted net income have surged significantly, supported by a growing asset base. The increase in both reported and adjusted ROA highlights improving returns on the company’s assets, implying effective management of resources and potential successful strategic initiatives. The close proximity between reported and adjusted figures over time suggests increased transparency or stabilization in accounting adjustments.