Chipotle Mexican Grill Inc. (NYSE:CMG) 

Inventory Turnover

Inventory turnover shows significant fluctuations over the periods analyzed. Starting from 186.94 in March 2020, it generally trends upward until peaking at around 218.61 in September 2024, with some intermittent declines. Notably, the turnover dropped to 161.15 in December 2024 before recovering. The overall pattern indicates relatively high efficiency in managing inventory with some volatility.

Receivables Turnover

Receivables turnover has demonstrated a volatile pattern, with values ranging from a low of 57.27 in March 2020 to a peak of 152.24 in September 2023. There are several substantial spikes, such as the jump to 136.37 in June 2023 and subsequent increases. These fluctuations suggest varying efficiency in collecting receivables, with periods of accelerated collections followed by slower turnover.

Payables Turnover

Payables turnover maintains a relatively stable profile, fluctuating modestly between roughly 32.44 and 42.59. The series shows some variability primarily within a narrow range, indicating consistent management of payables and supplier payments over time.

Working Capital Turnover

There is a pronounced upward trend in working capital turnover from an early value of approximately 10 in early 2020 to peaks exceeding 37 in late 2021. This is followed by a reduction and renewed volatility, with fluctuations settling between 14 and 20 in later periods. The initial rise suggests improving operational efficiency regarding the use of working capital, while later variability may reflect changing business conditions or strategic shifts.

Average Inventory Processing Period

This metric is remarkably consistent at 2 days throughout all periods, indicating stable inventory handling and rapid inventory movement.

Average Receivable Collection Period

The receivable collection period oscillates primarily between 2 and 6 days, showing some minor variability but overall remaining low. This suggests efficient collection processes with brief durations for receivable turnover.

Operating Cycle

The operating cycle exhibits a generally short timeframe, varying between 4 and 8 days, reflecting quick conversion of inventory and receivables into cash. Minor fluctuations are observed, with a trend towards a slightly shorter cycle in later periods.

Average Payables Payment Period

The payment period to suppliers remains fairly steady, primarily between 9 and 11 days. This consistency indicates a stable payment policy without significant shifts in payment timing.

Cash Conversion Cycle

The cash conversion cycle is consistently negative, ranging from -1 to -6 days across the periods. This negative cycle implies that the company collects cash from customers faster than it pays its suppliers, which is favorable for maintaining liquidity. The negative trend strengthens slightly over time, suggesting improving cash flow positioning.

Restaurant Operating Costs (exclusive of depreciation and amortization)

This expense category demonstrates a consistent upward trend over the periods analyzed. Starting from approximately $1,161,905 thousand at the end of Q1 2020, the costs rose steadily each quarter, reaching around $2,225,163 thousand by Q2 2025. This pattern indicates increasing operating expenditures related to restaurant operations, potentially driven by expansion, inflation, or increased input costs.

Notably, there is no significant seasonal fluctuation observable, as the growth appears relatively steady quarter over quarter.

Inventory

Inventory levels have generally increased over time but exhibit more variability compared to operating costs. From about $23,335 thousand in Q1 2020, inventory grew to a peak near $49,848 thousand in Q4 2024, before slightly declining to $40,402 thousand by Q2 2025.

This increase may reflect expanded operations or changes in supply chain management. However, the fluctuations suggest some adjustments in inventory holding practices or response to demand variability, as there is no consistent quarter-to-quarter growth pattern like that seen in operating costs.

Inventory Turnover Ratio

The inventory turnover ratio data are partially complete and begin from Q4 2020, with a ratio around 187 times. Subsequently, the ratio fluctuates but generally remains high, indicating strong inventory efficiency. Values range typically between approximately 160 and 220 times, without a clear upward or downward long-term trend.

Such high turnover ratios are indicative of rapid inventory movement, which is typical for perishable goods or fast-service restaurants. The slight variability may reflect seasonal demand or inventory management strategies but does not suggest major concerns or anomalies.

Overall Observations

The analyzed data exhibit a steady increment in restaurant operating costs, pointing toward growth or rising expenses in running the core business. Inventory levels also rise, albeit with more fluctuations, potentially aligned with operational scaling or supply adjustments.

The consistently high inventory turnover ratios reflect effective inventory management relative to sales volume, sustaining operational efficiency despite rising inventory values.

No sudden shifts or abnormalities are evident, suggesting stable operational trends over the observed quarters.

The quarterly financial data reveals several notable trends and patterns over the observed periods.

Revenue Trends

Revenue exhibits a general upward trajectory from the beginning through the latest periods. Starting at approximately 1.41 billion US dollars in the first quarter of 2020, it shows fluctuations but an overall increase, reaching over 3 billion US dollars by the second quarter of 2025. Noteworthy is the steady rise after mid-2021, with particularly strong growth from early 2023 onward. Despite minor quarter-to-quarter variability, the overall expansion in revenue indicates sustained business growth.

Accounts Receivable, Net

The net accounts receivable values display a somewhat volatile pattern across the quarters. Initial values near 63 million US dollars in the first quarter of 2020 oscillate significantly through the timeline, with peaks observed near the fourth quarter of 2024 at about 144 million US dollars. This suggests fluctuations in credit sales or collection efficiency. Periods of increased accounts receivable may imply slower collections or extended credit terms during those quarters.

Receivables Turnover Ratio

The receivables turnover ratio reflects how effectively the company converts receivables into cash. Starting at approximately 57.27 in the fourth quarter of 2020, the ratio generally trends upwards with fluctuations, reaching a high point of over 152 in the third quarter of 2023. This indicates improved collection efficiency in some periods. However, the ratio drops notably in several quarters thereafter, such as in the first quarter of 2025 at around 78.59, implying variability in receivables management efficiency.

Insights and Relationships

While revenue growth is consistent, the oscillations in accounts receivable combined with the fluctuating receivables turnover ratio suggest variability in the company's credit policies or customer payment behaviors. Strong receivables turnover ratios coincide with periods of relatively moderate receivables balances, reflecting efficient collections. Conversely, peaks in receivables balances with lower turnover ratios may signal potential collection delays or credit risk adjustments.

The analysis of the quarterly financial data reveals several noteworthy trends in operating costs, accounts payable, and payables turnover ratios over the observed periods.

Restaurant Operating Costs, Exclusive of Depreciation and Amortization

This expense category exhibits a generally upward trend across the quarters. Starting from approximately 1,161,905 thousand USD in March 2020, the costs steadily increased each period, reaching around 2,225,163 thousand USD by June 2025. The growth is relatively consistent, with some incremental acceleration noticeable between the years 2023 to 2025. This suggests a rising cost base related to restaurant operations excluding depreciation and amortization, possibly reflecting expansion activities, inflationary pressures, or higher input costs.

Accounts Payable

The accounts payable balance demonstrates volatility over the examined quarters without a clear long-term directional trend. Initial values in early 2020 show a figure of approximately 130,423 thousand USD, which fluctuates through peaks and declines, reaching around 216,347 thousand USD in June 2025. Notable fluctuations occur, such as a peak near 207,541 thousand USD in March 2023, followed by decreases and subsequent rises. This inconsistent movement may reflect changes in purchasing patterns, payment terms, or working capital management strategies.

Payables Turnover Ratio

This ratio, measured in turns per year, fluctuates over the periods with values generally ranging between approximately 32.44 and 42.59. It shows some cyclical movement but no sustained trend upwards or downwards. The highest turnover occurs around September 2023 at roughly 42.59, indicating faster payment of liabilities during that time, while lower ratios near 32.44 (December 2020) suggest slower payments in other periods. This variability indicates adjustments in the company's efficiency or approach in managing payables, potentially influenced by seasonal factors or strategic changes in supplier payment practices.

In summary, the data points to a continuous increase in operating costs related to restaurant functions, alongside fluctuating accounts payable balances and payables turnover ratios that do not demonstrate a consistent directional trend. The rising operating costs may highlight growth or inflation influences, while the variability in payables metrics suggests dynamic management of supplier relationships and cash flow timing.

The financial data over the considered periods show several notable trends in working capital, revenue, and working capital turnover ratios.

Working Capital

Working capital exhibits a generally fluctuating pattern with a significant decline observed from the end of 2021 through early 2023 before embarking on a recovery trajectory. It peaked at 667,642 thousand USD in September 2021, then dropped sharply to 214,676 thousand USD in June 2022. Following this low point, the figure steadily increased, reaching a high of 743,142 thousand USD by June 2024. However, the last few quarters show some volatility, with figures declining again before rising toward the end of the reported period.

Revenue

Revenue shows a consistent growth trend across the periods with only minor fluctuations. Starting from approximately 1,410,772 thousand USD in March 2020, revenue increased progressively, reaching a peak of 3,063,393 thousand USD in June 2025. There is a noticeable step-up in revenue from 2021 onwards, with sustained growth each quarter, reflecting a strong upward momentum in sales performance over time.

Working Capital Turnover Ratio

The working capital turnover ratio, available for later periods, demonstrates an increasing efficiency in utilizing working capital to generate revenue initially. It rose sharply from 10.01 at the end of 2020 to a peak of 37.95 in September 2022. After this peak, the ratio declined and stabilized mostly between 15 and 20 for the subsequent quarters, indicating that although efficiency moderated after the peak, working capital was consistently turned over at a relatively high rate compared to the early reported period.

Overall, the data indicate that while revenue experienced steady and robust growth, working capital management faced challenges marked by sharp declines and recoveries. The working capital turnover suggests an initial period of increasing efficiency that later normalized but remained at healthy levels. This pattern could imply strategic adjustments in capital structure or operational cycles affecting working capital, balanced against strong revenue growth that supports overall business expansion.

The inventory turnover ratio demonstrates a fluctuating yet generally strong performance across the observed periods. Beginning with a ratio of 186.94 in Q1 2021, it increased to a peak of 213.29 in Q3 2021, followed by a slight decline towards Q4 2021. In 2022, the ratio exhibited variability, dropping to 177.91 in Q1, recovering above 200 in Q2 and Q3, but then slightly reducing towards Q4. Throughout 2023, the turnover ratio remained relatively stable, averaging close to the low 190s with minor fluctuations. Early data from 2024 shows notable variation, with a high of 218.61 in Q3 but a substantial dip to 161.15 in Q4, followed by recovery above 200 in the subsequent quarters.

Despite these variations, the average inventory processing period remained constant at 2 days for all recorded quarters. This steady processing period indicates that the company maintained efficient inventory management practices over time, as inventory turnover changes were not driven by processing time but likely by other operational factors such as sales volume or inventory replenishment rates.

Inventory Turnover Ratio Trends

The ratio peaked in mid-2021 and experienced ups and downs through subsequent quarters, suggesting periods of accelerated sales or inventory management improvements, interspersed with slower turnover intervals.

Sharp decreases, such as in late 2024, may signal temporary operational challenges or changes in inventory strategy that merit further investigation.

Average Inventory Processing Period

The constant two-day period reflects operational consistency in how quickly inventory moves through processing stages, underpinning the likelihood that turnover fluctuations derive from external sales factors rather than internal delays.

The receivables turnover ratio exhibits considerable fluctuations over the observed periods. Starting from a level of 57.27, it rises sharply to above 90 in mid-2020 and remains elevated throughout 2021, peaking at 118.06 by the end of that year. After a decline to approximately 80.79 in early 2023, the ratio increases again, reaching a high point of 152.24 in the middle of 2023. The turnover then decreases again towards late 2023 but stays above earlier levels, fluctuating between the range of approximately 85 to 117 in subsequent quarters up to mid-2025. This indicates generally strong and improving efficiency in collecting receivables over the long term, although the variability suggests some periods of slower collection could have occurred.

The average receivable collection period reflects an inversely correlated pattern relative to the turnover ratio, as expected. Starting at 6 days in early 2020, the collection period decreases rapidly to values between 2 and 5 days for most subsequent periods. This shorter collection horizon is sustained over the entire timeline, with occasional minor increases to 5 days but predominantly around 3 to 4 days. Such figures indicate that the time taken to convert receivables into cash has significantly improved compared to the initial data points, supporting the view of enhanced liquidity management.

Receivables Turnover

Shows a general upward trend with marked peaks in mid-2023 and late 2021, suggesting improved efficiency in revenue collection over time.

Experiences fluctuations that may indicate seasonal or operational variances but maintains a higher level than earlier periods.

Average Receivable Collection Period

Consistently low throughout the timeline, fluctuating minimally around 3 to 5 days after initial reduction, illustrating strong credit and collections management.

The inverse movement compared to turnover ratio confirms the expected relationship between the two metrics, validating the reliability of the observed trends.

The analysis of the financial data reveals notable trends in the operational efficiency metrics over the examined periods.

Average Inventory Processing Period

This metric remained consistently stable at 2 days from March 2021 through June 2025. There is no observed variation, indicating a steady inventory turnover duration throughout the period.

Average Receivable Collection Period

The receivable collection period shows some fluctuations but mostly reflects a downward trend. Starting from 6 days in March 2021, it generally decreased, reaching as low as 2 days in September 2023. Minor variations occur with occasional increases to 5 days, but overall collection efficiency improved as the periods progressed.

Operating Cycle

The operating cycle, which combines inventory and receivables periods, has also shown a general decline from 8 days in March 2021 to as low as 4 days in September 2023. This suggests an improvement in the company's operational efficiency. Across the timeline, the operating cycle mostly ranges between 4 and 7 days, indicating relatively consistent management of working capital.

Overall, the stability in inventory processing coupled with reducing receivables collection and a shortened operating cycle points to improved efficiency in working capital management over the examined periods.

The data presents trends in payables management over multiple quarters, focusing on two key metrics: payables turnover ratio and average payables payment period expressed in days.

Payables Turnover Ratio

The payables turnover ratio starts at 40.52 in March 2020 and generally fluctuates within a range from about 32.44 to 42.59 across the observed periods. Notably, it reached a low point of 32.44 in December 2020, indicating a slower frequency of paying off suppliers at that time. Subsequently, the ratio recovered and exhibited oscillations, with peaks above 39 in multiple quarters, including September 2022, March 2023, and the last two quarters in 2024 and mid-2025. The fluctuations indicate periodic adjustments in payables management, possibly reflecting variations in supplier payment efficiency or strategic changes in credit terms with suppliers.

Average Payables Payment Period (Days)

The average payment period remained relatively stable over the quarters, predominantly ranging between 9 and 11 days. Early in the period, from March through December 2020, it was around 9 to 11 days with a slight increase observed in the last quarter of 2020 reaching 11 days. For the majority of subsequent quarters, the payment period consistently hovered around 9 to 10 days, demonstrating steady payment practices. The periods with 11 days, such as December 2021 and December 2023, indicate minor elongations in the payment cycle, but these were not sustained long term.

Overall, the data suggests that payables management has been relatively consistent, with a slight tendency towards shortening the payment cycle in some periods as inferred from the higher payables turnover ratios and stable average payment days. The observed variability does not indicate any significant disruption but rather normal operational adjustments over time.

The analysis of the quarterly financial data reveals consistent patterns in the average inventory processing period, average receivable collection period, average payables payment period, and the cash conversion cycle over the observed time frame.

Average Inventory Processing Period

The average inventory processing period remains steady at 2 days from March 2021 through June 2025. This indicates a stable inventory turnover rate with minimal fluctuations, reflecting effective inventory management practices.

Average Receivable Collection Period

The average receivable collection period shows slight variability, generally fluctuating between 2 and 6 days. The period decreases from 6 days in March 2021 to lower values such as 2 or 3 days in subsequent quarters, indicating improved efficiency in collecting receivables over time. However, occasional increases to 4 or 5 days suggest some periodic delay in receivables collection.

Average Payables Payment Period

The average payables payment period remains relatively stable, ranging between 9 and 11 days throughout the quarters. Occasional fluctuations between 9 and 11 days do not present a clear upward or downward trend, implying consistent payment practices towards suppliers and creditors.

Cash Conversion Cycle

The cash conversion cycle consistently remains in negative territory, between approximately -1 and -6 days, indicating that the company is able to convert its investments in inventory and receivables into cash before it needs to settle its payables. This negative cash conversion cycle demonstrates strong operational efficiency. Additionally, the cycle shows minor fluctuations but maintains a generally negative trend, reaching its most negative point at -6 days in December 2023.

Overall, the data illustrates stable and efficient working capital management. Inventory processing is rapid and consistent. Receivables collection has improved in some periods though with occasional minor delays. Payables payment remains steady with no significant variability. The persistently negative cash conversion cycle suggests effective coordination between inventory turnover, collections, and payments, contributing positively to liquidity and operational cash flow.