Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Solvency Ratios (Summary)
Chipotle Mexican Grill Inc., solvency ratios
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).
- Debt to equity (including operating lease liability)
- The ratio demonstrates a gradual decline over the five-year period, decreasing from 1.56 in 2020 to 1.24 in 2024. This trend indicates a consistent reduction in reliance on debt financing relative to shareholders’ equity.
- Debt to capital (including operating lease liability)
- This ratio remains stable at 0.61 for the initial three years (2020-2022), then decreases steadily to 0.55 by 2024. The reduction suggests an improved capital structure with a lower proportion of debt in total capital over time.
- Debt to assets (including operating lease liability)
- The ratio is relatively steady around 0.53-0.54 from 2020 to 2022, followed by a decline to 0.49 by the end of 2024. This pattern reflects a slightly lower proportion of debt compared to total assets, indicating strengthening asset coverage.
- Financial leverage
- Financial leverage decreases consistently across the period, starting at 2.96 in 2020 and falling to 2.52 in 2024. This reduction suggests the company is adopting a less leveraged, more equity-funded financial structure over time.
- Fixed charge coverage
- The ratio shows a strong upward trend, rising from 1.88 in 2020 to 5.13 in 2024. This improvement indicates a growing ability to cover fixed charges, reflecting stronger earnings or reduced fixed obligations relative to earnings.
Debt Ratios
Coverage Ratios
Debt to Equity
Chipotle Mexican Grill Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Equity, Sector | ||||||
| Consumer Services | ||||||
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Shareholders' Equity
- Over the reported periods, shareholders' equity demonstrates a consistent and substantial upward trend. Starting from approximately 2.02 billion US dollars at the end of 2020, it increased annually to about 3.66 billion US dollars by the end of 2024. This represents a significant growth, indicating strengthening financial stability or retained earnings growth over this five-year span.
- Total Debt
- Data on total debt is absent for all the reporting periods, which limits the ability to assess any leverage trends or changes in the company's capital structure related to debt.
- Debt to Equity Ratio
- The debt to equity ratio values are missing for all periods, making it impossible to evaluate leverage dynamics or the relative proportion of debt financing to equity financing.
Debt to Equity (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Current operating lease liabilities | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt shows a consistent upward trend over the five-year period. Starting at approximately $3.16 billion in 2020, it increased steadily each year, reaching about $4.54 billion by the end of 2024. This represents an overall significant increase in the company's liabilities.
- Shareholders' Equity
- Shareholders' equity also demonstrates continuous growth from roughly $2.02 billion in 2020 to approximately $3.66 billion in 2024. Notably, there is a marked increase between 2022 and 2023, where equity jumps from around $2.37 billion to over $3.06 billion, indicating strengthened capitalization or retained earnings during that period.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio exhibits a slight decline over the years, moving from 1.56 in 2020 and 1.58 in 2022 down to 1.24 by 2024. Despite the total debt rising, the ratio's decline suggests that equity growth outpaced debt accumulation, leading to an improved financial leverage position and potentially lower financial risk.
Debt to Capital
Chipotle Mexican Grill Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Shareholders’ equity | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Capital, Sector | ||||||
| Consumer Services | ||||||
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The available financial data reveals the following patterns over the five-year period ending December 31, 2024.
- Total capital
- The total capital has shown a consistent upward trajectory over the reported years. Starting at approximately 2.02 billion US dollars in 2020, it increased to roughly 2.30 billion in 2021, followed by 2.37 billion in 2022. This growth accelerated in 2023, with total capital reaching over 3.06 billion, and further rose substantially to about 3.66 billion by the end of 2024. This trend indicates a steady strengthening of the capital base, reflecting either capital injections, retained earnings, or other growth factors contributing to capital expansion.
- Total debt
- No data is available for total debt across the entire period, precluding analysis of leverage or borrowing trends.
- Debt to capital ratio
- Similar to total debt, no data is reported for the debt to capital ratio, making it impossible to analyze the company’s leverage position or changes therein over time.
In summary, the main observable trend is the robust increase in total capital from 2020 through 2024, suggesting strengthening financial resources. However, the absence of data on total debt and debt to capital ratio limits comprehensive assessment of the company’s capital structure and financial leverage.
Debt to Capital (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Current operating lease liabilities | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Shareholders’ equity | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The financial data exhibits several important trends regarding the company's debt and capital structure over the five-year period.
- Total Debt (including operating lease liability)
- The total debt consistently increases year over year, rising from approximately 3.16 billion USD in 2020 to about 4.54 billion USD in 2024. This indicates ongoing borrowing or increasing liabilities, reflecting an upward trajectory in debt obligations over the observed period.
- Total Capital (including operating lease liability)
- Total capital also shows a steady growth from around 5.18 billion USD in 2020 to over 8.19 billion USD in 2024. The growth in capital is more pronounced than that of debt, which suggests the company is expanding its capital base alongside increasing debt.
- Debt to Capital Ratio (including operating lease liability)
- This ratio remains constant at 0.61 for the first three years (2020-2022), indicating a stable proportion of debt relative to total capital during that time. However, starting in 2023, the ratio declines to 0.57 and further decreases to 0.55 in 2024. This downward trend suggests an improvement in the company’s capital structure, with a relatively lower reliance on debt financing compared to its overall capital.
In summary, while the company has been increasing its absolute debt levels, the pace of growth in total capital surpasses that of debt. The declining debt to capital ratio in the later years implies a strengthening balance sheet and potentially reduced financial risk associated with leverage.
Debt to Assets
Chipotle Mexican Grill Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Assets, Sector | ||||||
| Consumer Services | ||||||
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The data reveals a progressive increase in total assets over the five-year period. The asset value rose from approximately 5.98 billion USD at the end of 2020 to about 9.20 billion USD by the end of 2024. This consistent growth indicates an expansion in the company's asset base, suggesting investments in property, equipment, or other asset categories.
However, there is no information provided for total debt or the debt-to-assets ratio for any of the years. The absence of debt data prevents an analysis of the company's leverage or capital structure trends over this period. Without these figures, it is not possible to evaluate the company's financial risk or the efficiency of asset utilization in relation to its liabilities.
In summary, while the asset growth trend is clearly positive, the lack of debt-related data limits the ability to assess overall financial health fully. The observed pattern points to the company's asset accumulation strategy, but further information would be necessary to draw conclusions about solvency and leverage.
Debt to Assets (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Current operating lease liabilities | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2024.
- Total debt (including operating lease liability)
- The total debt increased steadily each year, starting from approximately $3.16 billion in 2020 and rising to around $4.54 billion by 2024. This denotes a consistent upward trajectory in the company's debt obligations over the timeframe analyzed.
- Total assets
- The company's total assets also grew notably from about $5.98 billion in 2020 to approximately $9.20 billion in 2024. This demonstrates a significant expansion in asset base, with the most substantial increments observed between 2022 and 2024.
- Debt to assets ratio (including operating lease liability)
- Despite the increases in both debt and assets, the debt to assets ratio exhibits a slight decline overall. It remained steady at around 0.53 in 2020 and 2021, increased marginally to 0.54 in 2022, then decreased to 0.50 in 2023 and further to 0.49 in 2024. This suggests an improvement in the company’s leverage position relative to its asset growth during the latter years, indicating enhanced asset coverage for its liabilities.
Financial Leverage
Chipotle Mexican Grill Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | ||||||
| Shareholders’ equity | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Financial Leverage, Sector | ||||||
| Consumer Services | ||||||
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets have shown a consistent upward trend over the analyzed period. Starting at approximately 5.98 billion US dollars in 2020, assets increased steadily each year, reaching around 9.20 billion US dollars by the end of 2024. This growth reflects an expansion of the company's asset base over the five-year horizon.
- Shareholders' equity
- Shareholders' equity has similarly trended upward throughout the period. Beginning at about 2.02 billion US dollars in 2020, equity increased each year, with a more noticeable rise between 2022 and 2023. By 2024, equity reached approximately 3.66 billion US dollars, indicating strengthening of the company's net worth and potential retention of earnings.
- Financial leverage
- The financial leverage ratio has gradually decreased over the period, starting at 2.96 in 2020 and declining to 2.52 by 2024. This indicates a reduction in the relative use of debt financing in proportion to equity. The decline in leverage suggests an improvement in the capital structure, potentially signaling lower financial risk and a more conservative financing approach.
Interest Coverage
Chipotle Mexican Grill Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Interest Coverage, Sector | ||||||
| Consumer Services | ||||||
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
The analyzed financial data reveals a consistent and substantial upward trend in earnings before interest and tax (EBIT) over the five-year period. EBIT increased significantly from $293,781 thousand in 2020 to $2,010,230 thousand in 2024. The growth in EBIT is steady and shows an accelerating pattern, especially notable between 2021 and 2024, reflecting a strengthening operational performance.
- Earnings before interest and tax (EBIT)
- EBIT grew from approximately $294 million in 2020 to over $2 billion by 2024, indicating robust expansion and improved profitability.
- Interest expenses
- No data was provided regarding interest expense for any of the years. This absence makes it impossible to comment on the company's financing costs or their impact on financial performance during this period.
- Interest coverage ratio
- The interest coverage ratio data is missing, preventing analysis of the company’s ability to service its interest obligations, which typically indicates financial risk related to debt.
Overall, the company demonstrates strong operational growth as reflected in the escalating EBIT figures. However, the lack of data on interest expenses and coverage restricts a comprehensive assessment of financial leverage and risk, necessitating caution in evaluating the full financial health solely based on operating profits.
Fixed Charge Coverage
Chipotle Mexican Grill Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease cost | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest expense | ||||||
| Operating lease cost | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage1 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax show a consistent upward trajectory over the five-year period. Beginning at 627,659 thousand US dollars at the end of 2020, the figure nearly doubled by 2021 and continued to grow substantially each year, reaching 2,496,828 thousand US dollars by the end of 2024. This indicates a strong and accelerating growth in operational earnings before fixed charges.
- Fixed charges
- Fixed charges also increased steadily over the same period. Starting from 333,878 thousand US dollars in 2020, the fixed charges rose moderately year over year, reaching 486,598 thousand US dollars by 2024. Although the absolute amount of fixed charges grew, the rate of increase is more restrained compared to the growth of earnings before fixed charges and tax.
- Fixed charge coverage ratio
- The fixed charge coverage ratio improved significantly throughout the five years, growing from 1.88 in 2020 to 5.13 in 2024. The continuous increase in this ratio indicates that the company's earnings before fixed charges and tax have increasingly exceeded its fixed financial obligations, reflecting enhanced ability to cover fixed charges comfortably. This trend suggests strengthening financial stability and reduced risk related to fixed financial commitments.
- Overall Insights
- The data demonstrates robust financial growth and improved coverage of fixed financial obligations. Earnings before fixed charges and tax have expanded rapidly, outpacing the growth of fixed charges. Consequently, the fixed charge coverage ratio has more than doubled, indicating enhanced operational profitability and financial health. The company appears to be in a stronger position to meet its fixed financial commitments over time, suggesting resilience and improving creditworthiness.