Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Chipotle Mexican Grill Inc., short-term (operating) activity 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).
The analysis of the annual financial data reveals several noteworthy trends and patterns over the five-year period.
- Inventory Turnover
- The inventory turnover ratio shows a slight overall decline, starting at 186.94 in 2020 and decreasing to 169.51 by 2024. This indicates a modest reduction in the frequency with which inventory is sold and replaced annually.
- Receivables Turnover
- The receivables turnover ratio exhibits an upward trend from 57.27 in 2020 to a peak of 85.44 in 2023 before slightly declining to 78.59 in 2024. This rise suggests an improvement in the efficiency of collecting receivables over most of the period, with a minor slowdown in the last year.
- Payables Turnover
- Payables turnover ratio decreased from 40.52 in 2020 to 35.61 in 2022, indicating slower payment to suppliers, but then increased again to 39.38 by 2024. This fluctuating pattern suggests changes in payables management, with a recent movement toward faster payments.
- Working Capital Turnover
- Working capital turnover demonstrates significant variability, increasing sharply from 10.01 in 2020 to 34 in 2022, then decreasing to 16.73 in 2023 before slightly rising again to 18.49 in 2024. These fluctuations imply changes in the efficiency of using working capital to generate sales, with a notable peak in 2022.
- Average Inventory Processing Period
- The average inventory processing period remains consistently at 2 days throughout the five years, indicating stable inventory management practices.
- Average Receivable Collection Period
- This period decreases from 6 days in 2020 to 4 days in 2023, signifying faster collection of receivables, before increasing slightly back to 5 days in 2024. Overall, the data suggests improving receivables efficiency with minor recent deceleration.
- Operating Cycle
- The operating cycle shortens from 8 days in 2020 to 6 days in 2023, reflecting improved operational efficiency, and then extends slightly to 7 days in 2024.
- Average Payables Payment Period
- This period increased from 9 days in 2020 to 10 days between 2021 and 2023, before decreasing back to 9 days in 2024, indicating a relatively stable payment schedule with a temporary extension in the middle years.
- Cash Conversion Cycle
- The cash conversion cycle is consistently negative, ranging from -1 day in 2020 to a low of -4 days in 2023, suggesting that the company receives cash from sales before paying its suppliers. The cycle lengthens slightly to -2 days in 2024, though it remains negative overall.
In summary, the company exhibits stable inventory management with a consistently short average processing period. Receivables turnover and collection periods reveal improved efficiency in the early years, with some moderation in the latest year. Payables turnover and payment periods indicate fluctuations in supplier payments, with a recent trend toward faster payment. The working capital turnover shows notable variability, highlighting changing efficiency in using working capital to drive sales. The negative cash conversion cycle throughout the period suggests favorable cash flow timing, as cash inflows precede outflows consistently. Overall, the trends indicate generally efficient operational processes with some areas of variability requiring monitoring.
Turnover Ratios
Average No. Days
Inventory Turnover
Chipotle Mexican Grill Inc., inventory turnover 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) | ||||||
| Restaurant operating costs, exclusive of depreciation and amortization | 8,296,161) | 7,285,557) | 6,572,533) | 5,840,052) | 4,943,553) | |
| Inventory | 48,942) | 39,309) | 35,668) | 32,826) | 26,445) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 169.51 | 185.34 | 184.27 | 177.91 | 186.94 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| McDonald’s Corp. | 148.84 | 155.76 | 141.94 | 144.74 | 136.62 | |
| Starbucks Corp. | 14.89 | 14.46 | 10.97 | 12.89 | 11.90 | |
| Inventory Turnover, Sector | ||||||
| Consumer Services | 36.51 | 34.08 | 24.92 | 27.58 | 23.36 | |
| Inventory Turnover, Industry | ||||||
| Consumer Discretionary | 7.78 | 6.99 | 6.67 | 7.04 | 7.48 | |
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
Inventory turnover = Restaurant operating costs, exclusive of depreciation and amortization ÷ Inventory
= 8,296,161 ÷ 48,942 = 169.51
2 Click competitor name to see calculations.
- Restaurant Operating Costs, Exclusive of Depreciation and Amortization
- Over the given period, there is a consistent upward trend in restaurant operating costs, exclusive of depreciation and amortization. The costs increased from approximately $4.94 billion in 2020 to about $8.30 billion in 2024. This indicates a significant rise in operating expenses within the restaurant segment, with an overall increase of nearly 68% over five years.
- Inventory
- Inventory levels have shown a steady increase from around $26.4 million in 2020 to roughly $48.9 million in 2024. The inventory more than doubled during this timeframe, suggesting larger stock holdings, which could be associated with business expansion, increased sales volume, or changes in supply chain management.
- Inventory Turnover Ratio
- The inventory turnover ratio demonstrates some fluctuations, starting at 186.94 in 2020, dipping slightly to 177.91 in 2021, and then recovering to around 185 in 2022 and 2023. However, it declined to 169.51 in 2024. Although the ratio remains relatively high, indicating efficient inventory management, the decrease in 2024 suggests a slower turnover rate, which could be due to increased inventory levels or changes in sales velocity.
- Overall Insights
- The data reveals a general increase in both operating costs and inventory size over the period, reflecting business growth or inflationary pressures. Despite this growth, the inventory turnover ratio remains high but shows a declining trend in the latest year, highlighting potential challenges in maintaining inventory efficiency. Monitoring this ratio alongside rising costs will be critical for operational and financial optimization.
Receivables Turnover
Chipotle Mexican Grill Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 11,313,853) | 9,871,649) | 8,634,652) | 7,547,061) | 5,984,634) | |
| Accounts receivable, net | 143,963) | 115,535) | 106,880) | 99,599) | 104,500) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 78.59 | 85.44 | 80.79 | 75.77 | 57.27 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 75.52 | 48.38 | 52.17 | 53.67 | 34.05 | |
| Booking Holdings Inc. | 7.42 | 6.57 | 7.67 | 8.07 | 12.85 | |
| McDonald’s Corp. | 4.10 | 3.92 | 4.14 | 5.23 | 3.86 | |
| Starbucks Corp. | 29.80 | 30.38 | 27.44 | 30.92 | 26.62 | |
| Receivables Turnover, Sector | ||||||
| Consumer Services | 13.00 | 11.99 | 12.98 | 14.46 | 12.83 | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 18.67 | 17.85 | 17.96 | 21.22 | 21.85 | |
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
Receivables turnover = Revenue ÷ Accounts receivable, net
= 11,313,853 ÷ 143,963 = 78.59
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trajectory in the revenue figures over the five-year period. Starting from approximately $5.98 billion in 2020, revenue increased steadily each year, reaching about $11.31 billion in 2024. This indicates robust growth in the company's sales and overall market presence.
Accounts receivable, net, displayed a generally increasing trend as well, starting from roughly $104.5 million in 2020 and rising to approximately $144 million in 2024. This growth in receivables aligns with the increasing revenue, suggesting that the company is extending more credit to its customers or experiencing higher outstanding payments as sales expand. Notably, the increase in accounts receivable is somewhat proportionate but shows some acceleration in later years, particularly between 2023 and 2024.
The receivables turnover ratio, which measures how efficiently the company collects its receivables, demonstrated an overall improvement from 2020 to 2023. The ratio increased substantially from 57.27 in 2020 to a peak of 85.44 in 2023, indicating enhanced collection efficiency and possibly tighter credit policies or improved payment processes. However, there is a slight decline to 78.59 in 2024, which may suggest a marginal easing of collection efficiency or changes in credit terms.
Summarizing the trends, the company exhibits strong revenue growth accompanied by a rising level of accounts receivable that is generally well-managed, as reflected in the high receivables turnover ratios. The slight dip in turnover in the latest period warrants monitoring to ensure that the increase in accounts receivable does not translate into collection delays or higher credit risk going forward.
Payables Turnover
Chipotle Mexican Grill Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Restaurant operating costs, exclusive of depreciation and amortization | 8,296,161) | 7,285,557) | 6,572,533) | 5,840,052) | 4,943,553) | |
| Accounts payable | 210,695) | 197,646) | 184,566) | 163,161) | 121,990) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 39.38 | 36.86 | 35.61 | 35.79 | 40.52 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 13.23 | 12.08 | 10.94 | 9.77 | 10.96 | |
| Booking Holdings Inc. | 6.21 | 6.14 | 6.82 | 6.91 | 9.25 | |
| McDonald’s Corp. | 8.10 | 7.46 | 7.53 | 7.99 | 9.42 | |
| Starbucks Corp. | 16.59 | 16.92 | 16.57 | 17.06 | 18.50 | |
| Payables Turnover, Sector | ||||||
| Consumer Services | 10.10 | 10.01 | 10.75 | 11.42 | 14.22 | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 5.36 | 5.18 | 4.80 | 4.66 | 4.74 | |
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
Payables turnover = Restaurant operating costs, exclusive of depreciation and amortization ÷ Accounts payable
= 8,296,161 ÷ 210,695 = 39.38
2 Click competitor name to see calculations.
- Restaurant Operating Costs, Exclusive of Depreciation and Amortization
- The restaurant operating costs have shown a consistent upward trend over the five-year period from 2020 to 2024. Starting at approximately 4.94 billion US dollars in 2020, these costs increased steadily each year, reaching about 8.30 billion US dollars by 2024. This reflects a significant rise in expenses associated with restaurant operations, suggesting increased activity, expansion, inflationary impacts, or higher input costs.
- Accounts Payable
- Accounts payable have also increased progressively, from roughly 122 million US dollars in 2020 to about 211 million US dollars in 2024. The growth in payables aligns with the increase in operating costs, indicating potentially higher volumes of purchases or services received on credit. The rise is steady but moderate compared to operating costs, showing controlled management of short-term obligations.
- Payables Turnover Ratio
- The payables turnover ratio exhibits some variability but largely remains within a narrow range. Starting at 40.52 in 2020, the ratio declined to around 35.61 in 2022, reaching its lowest point then, before increasing again to 39.38 by 2024. This suggests that the company initially slowed down its payment pace relative to purchases but later accelerated payments nearing previous turnover levels. The fluctuations may indicate adjustments in payment policies or changes in supplier terms.
- Overall Insights
- The data indicates a continued increase in operational scale or cost structure over the analyzed period. While accounts payable grow in line with rising costs, maintaining payables turnover near previous levels reflects a stable approach to credit management and cash outflows. The company appears to manage its obligations efficiently despite the increasing magnitude of expenses.
Working Capital Turnover
Chipotle Mexican Grill Inc., working capital turnover 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) | ||||||
| Current assets | 1,780,587) | 1,620,713) | 1,175,837) | 1,381,564) | 1,420,237) | |
| Less: Current liabilities | 1,168,768) | 1,030,625) | 921,880) | 873,682) | 822,199) | |
| Working capital | 611,819) | 590,088) | 253,957) | 507,882) | 598,038) | |
| Revenue | 11,313,853) | 9,871,649) | 8,634,652) | 7,547,061) | 5,984,634) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 18.49 | 16.73 | 34.00 | 14.86 | 10.01 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.58 | 1.51 | 1.22 | 0.99 | 0.89 | |
| Booking Holdings Inc. | 4.90 | 5.77 | 2.33 | 1.59 | 0.77 | |
| McDonald’s Corp. | 13.25 | 8.64 | 5.39 | 3.13 | 131.28 | |
| Starbucks Corp. | — | — | — | 18.11 | 51.17 | |
| Working Capital Turnover, Sector | ||||||
| Consumer Services | 8.38 | 8.74 | 5.39 | 3.49 | 3.50 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 13.56 | 14.99 | 18.57 | 11.02 | 13.68 | |
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
Working capital turnover = Revenue ÷ Working capital
= 11,313,853 ÷ 611,819 = 18.49
2 Click competitor name to see calculations.
The annual financial data reveal several notable trends related to working capital, revenue, and working capital turnover over the five-year period ending December 31, 2024.
- Working Capital
- The working capital shows a fluctuating pattern. It started at 598,038 thousand US dollars in 2020 and then declined to 507,882 thousand US dollars in 2021. A significant drop occurred in 2022, with working capital falling sharply to 253,957 thousand US dollars. However, this trend reversed in the subsequent years, increasing to 590,088 thousand US dollars in 2023 and slightly rising further to 611,819 thousand US dollars in 2024. Overall, despite a temporary dip in 2022, working capital in 2024 remains marginally higher than the level observed in 2020.
- Revenue
- Revenue exhibits consistent and strong growth throughout the entire period. Starting at approximately 5.98 billion US dollars in 2020, revenue increased steadily each year, reaching 7.55 billion US dollars in 2021, 8.63 billion US dollars in 2022, 9.87 billion US dollars in 2023, and culminating at 11.31 billion US dollars in 2024. This upward trajectory reflects robust top-line expansion over the five years.
- Working Capital Turnover
- The working capital turnover ratio shows considerable variability over the five-year span. It begins at 10.01 in 2020, then increases significantly to 14.86 in 2021. A sharp peak occurs in 2022, with the ratio reaching 34, which aligns with the steep decline in working capital during that year, suggesting more efficient use of working capital relative to revenue despite lower absolute working capital levels. Following that peak, the ratio decreases to 16.73 in 2023 and rises moderately to 18.49 in 2024, indicating a normalization but still higher efficiency compared to 2020 and 2021.
In summary, the data indicate that revenue has consistently grown in the period under review, whereas working capital has experienced notable fluctuations, particularly a sharp decline in 2022 followed by recovery. Correspondingly, the working capital turnover ratio has varied widely, peaking when working capital was at its lowest, reflecting a pronounced change in operational efficiency during that year. The recent years show a trend toward stabilization in both working capital and turnover, coupled with sustained revenue growth.
Average Inventory Processing Period
Chipotle Mexican Grill Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 169.51 | 185.34 | 184.27 | 177.91 | 186.94 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 2 | 2 | 2 | 2 | 2 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| McDonald’s Corp. | 2 | 2 | 3 | 3 | 3 | |
| Starbucks Corp. | 25 | 25 | 33 | 28 | 31 | |
| Average Inventory Processing Period, Sector | ||||||
| Consumer Services | 10 | 11 | 15 | 13 | 16 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Discretionary | 47 | 52 | 55 | 52 | 49 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 169.51 = 2
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio demonstrates a general pattern of stability with some fluctuation over the observed periods. Starting at 186.94 in 2020, the ratio slightly decreased to 177.91 in 2021 before rising again to 184.27 in 2022. In 2023, it increased marginally to 185.34, followed by a noticeable decline to 169.51 in 2024. This indicates that the company generally maintained a high frequency of inventory turnover, though there was a significant reduction in turnover efficiency in the most recent year, which could suggest slower inventory movements.
- Average Inventory Processing Period
- The average inventory processing period remained constant at 2 days throughout all years analyzed from 2020 to 2024. This consistency suggests that the time taken to process inventory did not change despite fluctuations in turnover ratios, indicating stable inventory handling processes over the time span.
Average Receivable Collection Period
Chipotle Mexican Grill Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 78.59 | 85.44 | 80.79 | 75.77 | 57.27 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 5 | 4 | 5 | 5 | 6 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | 5 | 8 | 7 | 7 | 11 | |
| Booking Holdings Inc. | 49 | 56 | 48 | 45 | 28 | |
| McDonald’s Corp. | 89 | 93 | 88 | 70 | 95 | |
| Starbucks Corp. | 12 | 12 | 13 | 12 | 14 | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | 28 | 30 | 28 | 25 | 28 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 20 | 20 | 20 | 17 | 17 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 78.59 = 5
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio demonstrates an overall increasing trend from 2020 to 2023, rising from 57.27 to a peak of 85.44. This indicates an improvement in the company's efficiency in collecting receivables within this period. However, in 2024, there is a noticeable decline to 78.59, signaling a slight decrease in collection efficiency compared to the previous year, though the ratio remains significantly higher than in 2020.
- Average Receivable Collection Period
- The average receivable collection period decreased from 6 days in 2020 to 4 days in 2023, reflecting enhanced efficiency in the company's collection process and faster conversion of receivables into cash. In 2024, this period increased slightly to 5 days, correlating with the observed decrease in the receivables turnover ratio, indicating a marginal slowdown in collection speed but still maintaining better performance than the baseline year 2020.
Operating Cycle
Chipotle Mexican Grill Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | |
| Average receivable collection period | 5 | 4 | 5 | 5 | 6 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 7 | 6 | 7 | 7 | 8 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| McDonald’s Corp. | 91 | 95 | 91 | 73 | 98 | |
| Starbucks Corp. | 37 | 37 | 46 | 40 | 45 | |
| Operating Cycle, Sector | ||||||
| Consumer Services | 38 | 41 | 43 | 38 | 44 | |
| Operating Cycle, Industry | ||||||
| Consumer Discretionary | 67 | 72 | 75 | 69 | 66 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 5 = 7
2 Click competitor name to see calculations.
The average inventory processing period remained stable at 2 days throughout the observed five-year span. This consistency indicates an efficient and steady management of inventory turnover, reflecting a stable inventory policy or demand pattern.
The average receivable collection period showed minor fluctuations, initially decreasing from 6 days in 2020 to 4 days in 2023, followed by a slight increase to 5 days in 2024. This trend suggests an overall improvement in collecting receivables more quickly over the years, with a slight setback in the most recent period that may warrant attention to credit or collection practices.
The operating cycle, calculated as the sum of the average inventory processing period and the average receivable collection period, decreased from 8 days in 2020 to 6 days in 2023, then increased slightly to 7 days in 2024. This reflects an overall enhanced operational efficiency in managing cash flow timing, although the recent uptick suggests a slight elongation of the cycle that could impact liquidity if it continues.
- Inventory Management
- Consistently efficient, with no variation in processing period over five years.
- Receivables Collection
- Improved efficiency over the period but experienced a marginal reversal in the latest year.
- Operating Cycle
- Generally shortened over time, reflecting improved operational efficiency, but displayed slight lengthening in the final year analyzed.
Average Payables Payment Period
Chipotle Mexican Grill Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 39.38 | 36.86 | 35.61 | 35.79 | 40.52 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 9 | 10 | 10 | 10 | 9 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | 28 | 30 | 33 | 37 | 33 | |
| Booking Holdings Inc. | 59 | 59 | 54 | 53 | 39 | |
| McDonald’s Corp. | 45 | 49 | 48 | 46 | 39 | |
| Starbucks Corp. | 22 | 22 | 22 | 21 | 20 | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | 36 | 36 | 34 | 32 | 26 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 68 | 70 | 76 | 78 | 77 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 39.38 = 9
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio demonstrated a declining trend from 40.52 in 2020 to 35.61 in 2022, indicating a decrease in the frequency with which the company settled its payables during this period. However, this trend reversed in the subsequent years, with the ratio increasing to 36.86 in 2023 and further to 39.38 in 2024, suggesting an acceleration in the payment of obligations toward suppliers.
- Average Payables Payment Period
- The average payables payment period showed a slight increase from 9 days in 2020 to 10 days from 2021 to 2023, reflecting a marginal extension in the time taken to pay suppliers. In 2024, this period reverted to 9 days, aligning with the initial payment period observed in 2020. The stability in the payment period over the years indicates consistent management of accounts payable.
- Overall Analysis
- The data reflects that the company maintained a relatively steady approach to managing its payables over the five-year period. The initial decline and subsequent recovery in the payables turnover ratio indicate some variability in payment practices or purchasing behavior, yet the average payment period remained relatively short and stable, fluctuating only between 9 and 10 days. This suggests that the company generally prioritizes prompt payment to suppliers, which can be beneficial for maintaining strong supplier relationships and potentially favorable credit terms.
Cash Conversion Cycle
Chipotle Mexican Grill Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | |
| Average receivable collection period | 5 | 4 | 5 | 5 | 6 | |
| Average payables payment period | 9 | 10 | 10 | 10 | 9 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -2 | -4 | -3 | -3 | -1 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| McDonald’s Corp. | 46 | 46 | 43 | 27 | 59 | |
| Starbucks Corp. | 15 | 15 | 24 | 19 | 25 | |
| Cash Conversion Cycle, Sector | ||||||
| Consumer Services | 2 | 5 | 9 | 6 | 18 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Discretionary | -1 | 2 | -1 | -9 | -11 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 5 – 9 = -2
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period has remained constant at 2 days throughout the observed five-year period. This stability indicates consistent inventory turnover efficiency over time.
- Average Receivable Collection Period
- The average receivable collection period shows a decreasing trend from 6 days in 2020 to a low of 4 days in 2023, before slightly increasing to 5 days in 2024. This suggests improved efficiency in collecting receivables up to 2023, followed by a minor reversal in the final year.
- Average Payables Payment Period
- The average payables payment period increased from 9 days in 2020 to 10 days during 2021 to 2023, then returned to 9 days in 2024. This indicates a short-term extension in the time taken to pay suppliers in the middle years, with a reversion to the initial payment timeframe by 2024.
- Cash Conversion Cycle
- The cash conversion cycle has remained negative throughout the period, improving from -1 day in 2020 to -4 days in 2023, then decreasing slightly in absolute value to -2 days in 2024. Negative cash conversion cycles typically imply strong liquidity positions and efficient working capital management, with a temporary peak efficiency in 2023.