Stock Analysis on Net
Stock Analysis on Net

Chipotle Mexican Grill Inc. (NYSE:CMG)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Chipotle Mexican Grill Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 41.08% = 16.47% × 2.49
Jun 30, 2024 37.99% = 15.81% × 2.40
Mar 31, 2024 38.57% = 15.41% × 2.50
Dec 31, 2023 40.13% = 15.27% × 2.63
Sep 30, 2023 40.55% = 14.79% × 2.74
Jun 30, 2023 40.27% = 14.75% × 2.73
Mar 31, 2023 41.60% = 14.64% × 2.84
Dec 31, 2022 37.97% = 12.98% × 2.93
Sep 30, 2022 34.75% = 11.86% × 2.93
Jun 30, 2022 35.10% = 11.55% × 3.04
Mar 31, 2022 32.06% = 10.58% × 3.03
Dec 31, 2021 28.42% = 9.81% × 2.90
Sep 30, 2021 30.74% = 10.72% × 2.87
Jun 30, 2021 26.97% = 9.28% × 2.91
Mar 31, 2021 19.38% = 6.61% × 2.93
Dec 31, 2020 17.61% = 5.95% × 2.96
Sep 30, 2020 13.14% = 4.21% × 3.12
Jun 30, 2020 14.99% = 4.76% × 3.15
Mar 31, 2020 20.24% = 6.50% × 3.11
Dec 31, 2019 20.81% = 6.86% × 3.03
Sep 30, 2019 — = — × 3.04
Jun 30, 2019 — = — × 3.03
Mar 31, 2019 — = — × 3.12

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Chipotle Mexican Grill Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 41.08% = 13.51% × 1.22 × 2.49
Jun 30, 2024 37.99% = 13.23% × 1.20 × 2.40
Mar 31, 2024 38.57% = 12.70% × 1.21 × 2.50
Dec 31, 2023 40.13% = 12.45% × 1.23 × 2.63
Sep 30, 2023 40.55% = 12.27% × 1.21 × 2.74
Jun 30, 2023 40.27% = 12.00% × 1.23 × 2.73
Mar 31, 2023 41.60% = 11.49% × 1.27 × 2.84
Dec 31, 2022 37.97% = 10.41% × 1.25 × 2.93
Sep 30, 2022 34.75% = 9.61% × 1.23 × 2.93
Jun 30, 2022 35.10% = 9.28% × 1.24 × 3.04
Mar 31, 2022 32.06% = 8.74% × 1.21 × 3.03
Dec 31, 2021 28.42% = 8.65% × 1.13 × 2.90
Sep 30, 2021 30.74% = 9.88% × 1.09 × 2.87
Jun 30, 2021 26.97% = 8.57% × 1.08 × 2.91
Mar 31, 2021 19.38% = 6.44% × 1.03 × 2.93
Dec 31, 2020 17.61% = 5.94% × 1.00 × 2.96
Sep 30, 2020 13.14% = 4.08% × 1.03 × 3.12
Jun 30, 2020 14.99% = 4.55% × 1.05 × 3.15
Mar 31, 2020 20.24% = 5.95% × 1.09 × 3.11
Dec 31, 2019 20.81% = 6.27% × 1.09 × 3.03
Sep 30, 2019 — = — × — × 3.04
Jun 30, 2019 — = — × — × 3.03
Mar 31, 2019 — = — × — × 3.12

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Chipotle Mexican Grill Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 16.47% = 13.51% × 1.22
Jun 30, 2024 15.81% = 13.23% × 1.20
Mar 31, 2024 15.41% = 12.70% × 1.21
Dec 31, 2023 15.27% = 12.45% × 1.23
Sep 30, 2023 14.79% = 12.27% × 1.21
Jun 30, 2023 14.75% = 12.00% × 1.23
Mar 31, 2023 14.64% = 11.49% × 1.27
Dec 31, 2022 12.98% = 10.41% × 1.25
Sep 30, 2022 11.86% = 9.61% × 1.23
Jun 30, 2022 11.55% = 9.28% × 1.24
Mar 31, 2022 10.58% = 8.74% × 1.21
Dec 31, 2021 9.81% = 8.65% × 1.13
Sep 30, 2021 10.72% = 9.88% × 1.09
Jun 30, 2021 9.28% = 8.57% × 1.08
Mar 31, 2021 6.61% = 6.44% × 1.03
Dec 31, 2020 5.95% = 5.94% × 1.00
Sep 30, 2020 4.21% = 4.08% × 1.03
Jun 30, 2020 4.76% = 4.55% × 1.05
Mar 31, 2020 6.50% = 5.95% × 1.09
Dec 31, 2019 6.86% = 6.27% × 1.09
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in profitability measured by net profit margin ratio.