Chipotle Mexican Grill Inc. (NYSE:CMG)

The financial information indicates a positive trend in both net cash provided by operating activities and free cash flow to the firm (FCFF) over the observed period. Both metrics demonstrate growth from 2021 to 2024, with a slight decrease in FCFF in the final year presented.

Net Cash from Operations

Net cash provided by operating activities increased consistently from US$1,282,081 thousand in 2021 to US$2,105,076 thousand in 2024. This represents a substantial increase over the four-year period. The growth rate appears to moderate slightly in 2025, with a value of US$2,113,926 thousand, indicating a slower pace of expansion.

Free Cash Flow to the Firm (FCFF)

FCFF exhibited a similar upward trajectory, rising from US$843,641 thousand in 2021 to US$1,531,586 thousand in 2024. This signifies an improvement in the company’s ability to generate cash available to all investors after accounting for necessary investments. However, FCFF decreased to US$1,447,590 thousand in 2025, suggesting a potential shift in investment needs or operational efficiencies.

The correlation between net cash from operations and FCFF is strong, as increases in operating cash flow generally translate to increases in FCFF. The slight decline in FCFF in 2025, despite continued growth in operating cash flow, warrants further investigation to determine the underlying causes, such as increased capital expenditures or changes in working capital requirements.

Growth Rates

While specific growth rates are not explicitly calculated, the observed values suggest robust growth between 2021 and 2024. The deceleration in growth for both metrics in 2025 indicates a potential stabilization or a change in the company’s growth phase.

Overall, the trend suggests a strengthening financial position from 2021 to 2024, followed by a potential moderation in 2025. Continued monitoring of these metrics is recommended to assess the sustainability of the observed trends and to understand the factors influencing FCFF.

The effective income tax rate exhibited an increasing trend from 2021 to 2023, followed by a slight decrease in 2024 and 2025. The rate increased from 19.70% in 2021 to 24.20% in 2023, representing a cumulative increase of 4.5 percentage points over the period. A modest decline was then observed, with the rate decreasing to 23.70% in 2024 and further to 23.60% in 2025. No values are available for interest paid, net of tax, for any of the years presented.

Effective Income Tax Rate (EITR) - Trend Analysis

The EITR demonstrates a period of growth between 2021 and 2023, potentially attributable to changes in tax legislation or the company’s income mix. The subsequent stabilization and slight decrease in 2024 and 2025 suggest a potential leveling off of these factors or the impact of tax planning strategies. Further investigation into specific tax law changes and the company’s geographic income distribution would be necessary to fully understand these fluctuations.

The absence of reported values for interest paid, net of tax, prevents any analysis of this financial item. The lack of this information limits the ability to assess the company’s cost of borrowing and the impact of interest expense on its overall profitability. It is recommended to investigate the reason for the missing values and obtain this information for a comprehensive financial analysis.

Interest Paid, Net of Tax - Data Absence

The consistent lack of reported values for interest paid, net of tax, is a significant omission. This metric is crucial for evaluating the company’s financial leverage and its ability to service debt. Without this information, a complete assessment of the company’s financial health is not possible.

The Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) ratio exhibits fluctuations over the observed period. Initially, the ratio demonstrates a period of relative stability followed by a notable decline.

Enterprise Value (EV)

Enterprise Value increased from US$42,695,568 thousand in 2021 to US$43,489,172 thousand in 2022, representing a modest increase. A significant rise is then observed, with EV reaching US$70,561,726 thousand in 2023 and further increasing to US$76,522,516 thousand in 2024. However, in 2025, Enterprise Value decreased substantially to US$50,956,614 thousand.

Free Cash Flow to the Firm (FCFF)

Free Cash Flow to the Firm remained relatively consistent between 2021 and 2022, at approximately US$843,641 thousand and US$844,015 thousand, respectively. A considerable increase in FCFF is then apparent, rising to US$1,222,746 thousand in 2023 and peaking at US$1,531,586 thousand in 2024. FCFF experienced a slight decrease in 2025, settling at US$1,447,590 thousand.

EV/FCFF Ratio

The EV/FCFF ratio was approximately 50.61 in 2021 and 51.53 in 2022, indicating a stable valuation relative to free cash flow. The ratio increased to 57.71 in 2023, suggesting a higher valuation multiple. A decrease to 49.96 is observed in 2024. A substantial decline is then noted in 2025, with the ratio falling to 35.20. This suggests a significantly lower valuation relative to free cash flow generated by the firm in that year.

The decrease in the EV/FCFF ratio in 2025 is primarily driven by the combination of a decrease in Enterprise Value and a relatively stable Free Cash Flow to the Firm. The earlier increases in the ratio were largely influenced by the rapid growth in Enterprise Value, outpacing the growth in FCFF.