Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Chipotle Mexican Grill Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally improving trend from the first quarter of 2022 through the second quarter of 2025, followed by a decline in the most recent period. Throughout much of the observed period, the company maintained healthy liquidity levels, but the final quarter shows a notable decrease.
- Current Ratio
- The current ratio exhibited a slight decline from 1.32 in March 2022 to 1.28 in December 2022. A consistent upward trend was then observed, peaking at 1.71 in June 2024. The ratio subsequently decreased to 1.23 in December 2025, representing a reversal of the prior positive momentum. The fluctuations suggest changes in the composition of current assets and liabilities.
- Quick Ratio
- Similar to the current ratio, the quick ratio experienced a modest decrease from 1.13 to 1.09 during 2022. A clear improvement followed, reaching a high of 1.52 in June 2024. The quick ratio then decreased to 1.01 in December 2025, mirroring the trend observed in the current ratio and indicating a weakening ability to meet short-term obligations with the most liquid assets. The quick ratio consistently remained below the current ratio, indicating that inventory comprises a significant portion of current assets.
- Cash Ratio
- The cash ratio showed a similar pattern of initial stability followed by improvement and then decline. It increased from 1.03 in March 2022 to 1.43 in June 2024, demonstrating a strengthening capacity to cover immediate liabilities with cash and cash equivalents. However, the ratio fell to 0.88 in December 2025, suggesting a reduction in readily available cash and a potential increase in reliance on other current assets to meet short-term obligations. This represents the most significant proportional decrease among the three ratios.
The concurrent declines in all three ratios during the final quarter analyzed suggest a potential shift in working capital management or an increase in short-term liabilities. Further investigation would be required to determine the underlying causes of this recent trend and its potential implications for the company’s financial health.
Current Ratio
Chipotle Mexican Grill Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | 1,466,953) | 1,773,780) | 1,869,125) | 1,661,648) | 1,780,587) | 1,680,256) | 1,786,298) | 1,645,769) | 1,620,713) | 1,669,343) | 1,556,419) | 1,261,442) | 1,175,837) | 1,077,432) | 1,046,299) | 1,096,493) | |||||
| Current liabilities | 1,188,142) | 1,150,064) | 1,132,271) | 1,091,538) | 1,168,768) | 1,037,884) | 1,043,156) | 997,353) | 1,030,625) | 1,087,707) | 982,250) | 894,092) | 921,880) | 817,857) | 831,623) | 833,738) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.23 | 1.54 | 1.65 | 1.52 | 1.52 | 1.62 | 1.71 | 1.65 | 1.57 | 1.53 | 1.58 | 1.41 | 1.28 | 1.32 | 1.26 | 1.32 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Airbnb Inc. | — | 1.39 | 1.23 | 1.27 | 1.69 | 1.62 | 1.41 | 1.44 | 1.66 | 1.78 | 1.47 | 1.55 | 1.86 | 1.85 | 1.58 | 1.61 | |||||
| Booking Holdings Inc. | — | 1.33 | 1.25 | 1.22 | 1.31 | 1.23 | 1.17 | 1.22 | 1.28 | 1.44 | 1.55 | 1.59 | 1.86 | 1.45 | 1.45 | 1.72 | |||||
| DoorDash, Inc. | — | 2.04 | 2.07 | 1.72 | 1.66 | 1.65 | 1.64 | 1.64 | 1.64 | 1.72 | 1.69 | 1.73 | 1.86 | 2.12 | 2.39 | 2.51 | |||||
| McDonald’s Corp. | — | 1.00 | 1.30 | 1.18 | 1.19 | 0.78 | 1.08 | 0.83 | 1.16 | 1.71 | 1.35 | 1.47 | 1.43 | 1.65 | 1.41 | 1.10 | |||||
| Starbucks Corp. | 0.72 | 0.76 | 0.64 | 0.75 | 0.75 | 0.89 | 0.86 | 0.70 | 0.78 | 0.78 | 0.77 | 0.75 | 0.77 | 0.84 | 0.83 | 0.81 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,466,953 ÷ 1,188,142 = 1.23
2 Click competitor name to see calculations.
The current ratio exhibited a generally increasing trend over the analyzed period, with some quarterly fluctuations. Initially, the ratio stood at 1.32 in March 2022, decreased to 1.26 in June 2022, and then recovered to 1.32 in September 2022. A slight decline to 1.28 was observed at the end of 2022.
The first half of 2023 demonstrated a notable improvement in the current ratio, rising from 1.41 in March to 1.58 in June. This upward momentum continued, albeit at a slower pace, reaching 1.53 in September and 1.57 in December. The ratio further increased to 1.65 in March 2024 and peaked at 1.71 in June 2024.
- Current Ratio Trend (2024-2025)
- Following the peak in June 2024, the current ratio experienced a moderate decrease to 1.62 in September 2024 and further to 1.52 in December 2024. This downward trend continued into 2025, with the ratio fluctuating around 1.52-1.65 through the first half of the year. A more significant decline was observed in the second half of 2025, falling to 1.54 in September and ultimately reaching 1.23 in December.
The observed fluctuations suggest a dynamic relationship between current assets and current liabilities. The increases in the ratio generally indicate an improved ability to meet short-term obligations, while the decreases suggest a potential weakening in this ability. The substantial decline in the final quarter of 2025 warrants further investigation to determine the underlying causes, such as changes in working capital management or shifts in the composition of current assets and liabilities.
- Overall Assessment
- Throughout most of the analyzed period, the current ratio remained above 1.30, generally indicating a healthy level of liquidity. However, the recent decline in the ratio, particularly in the latter part of 2025, suggests a potential area of concern that requires monitoring and further analysis.
Quick Ratio
Chipotle Mexican Grill Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | 350,545) | 698,743) | 844,524) | 725,597) | 748,537) | 698,547) | 806,528) | 727,394) | 560,609) | 602,307) | 504,866) | 409,727) | 384,000) | 366,623) | 520,933) | 615,863) | |||||
| Accounts receivable, net | 156,466) | 95,844) | 105,004) | 101,594) | 143,963) | 93,202) | 97,542) | 89,836) | 115,535) | 71,122) | 60,985) | 65,869) | 106,880) | 71,276) | 83,636) | 89,295) | |||||
| Current investments | 698,591) | 722,531) | 701,968) | 689,125) | 674,378) | 668,676) | 683,287) | 692,474) | 734,838) | 851,699) | 851,142) | 652,858) | 515,136) | 417,278) | 240,684) | 240,379) | |||||
| Total quick assets | 1,205,602) | 1,517,118) | 1,651,496) | 1,516,316) | 1,566,878) | 1,460,425) | 1,587,357) | 1,509,704) | 1,410,982) | 1,525,128) | 1,416,993) | 1,128,454) | 1,006,016) | 855,177) | 845,253) | 945,537) | |||||
| Current liabilities | 1,188,142) | 1,150,064) | 1,132,271) | 1,091,538) | 1,168,768) | 1,037,884) | 1,043,156) | 997,353) | 1,030,625) | 1,087,707) | 982,250) | 894,092) | 921,880) | 817,857) | 831,623) | 833,738) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 1.01 | 1.32 | 1.46 | 1.39 | 1.34 | 1.41 | 1.52 | 1.51 | 1.37 | 1.40 | 1.44 | 1.26 | 1.09 | 1.05 | 1.02 | 1.13 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Airbnb Inc. | — | 1.36 | 1.20 | 1.25 | 1.64 | 1.59 | 1.38 | 1.41 | 1.62 | 1.75 | 1.45 | 1.52 | 1.83 | 1.82 | 1.55 | 1.59 | |||||
| Booking Holdings Inc. | — | 1.26 | 1.18 | 1.15 | 1.24 | 1.16 | 1.11 | 1.15 | 1.20 | 1.35 | 1.45 | 1.49 | 1.73 | 1.34 | 1.37 | 1.63 | |||||
| DoorDash, Inc. | — | 1.80 | 1.83 | 1.49 | 1.41 | 1.36 | 1.35 | 1.35 | 1.35 | 1.42 | 1.41 | 1.43 | 1.54 | 1.87 | 2.14 | 2.23 | |||||
| McDonald’s Corp. | — | 0.82 | 1.03 | 0.90 | 0.90 | 0.58 | 0.82 | 0.63 | 1.03 | 1.43 | 1.04 | 1.25 | 1.24 | 1.35 | 1.07 | 0.95 | |||||
| Starbucks Corp. | 0.46 | 0.52 | 0.40 | 0.53 | 0.52 | 0.59 | 0.56 | 0.48 | 0.55 | 0.52 | 0.51 | 0.48 | 0.48 | 0.52 | 0.55 | 0.57 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,205,602 ÷ 1,188,142 = 1.01
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a generally positive trend, with fluctuations observed throughout the timeframe. Initially, the ratio experienced a slight decline before exhibiting a period of consistent growth, followed by a recent stabilization and then a decrease.
- Overall Trend
- The quick ratio began at 1.13 and generally increased through the first half of 2023, peaking at 1.44. Following this peak, the ratio experienced a moderate decline, reaching 1.01 by the end of the analyzed period. This suggests a strengthening of the company’s ability to meet its short-term obligations with its most liquid assets initially, followed by a weakening of that position more recently.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2022, a decrease in the quick ratio from 1.13 to 1.02 was observed. This was followed by a recovery to 1.05 by September 2022 and a further increase to 1.09 by December 2022. The most significant increase occurred between March 2023 and June 2023, with the ratio rising from 1.26 to 1.44. This period indicates improved liquidity.
- Recent Performance (2023-2025)
- After peaking in June 2023, the quick ratio experienced a gradual decline, moving from 1.44 to 1.32 by September 2025. The most substantial decrease occurred between September 2025 and December 2025, with the ratio falling from 1.32 to 1.01. This recent decline warrants further investigation to determine the underlying causes.
- Supporting Asset and Liability Movements
- Total quick assets generally increased over the period, rising from US$945,537 thousand to US$1,205,602 thousand before decreasing to US$1,566,878 thousand and then to US$1,205,602 thousand. Current liabilities also increased overall, from US$833,738 thousand to US$1,188,142 thousand. The recent decline in the quick ratio appears to be driven by a more rapid increase in current liabilities compared to the growth in quick assets.
The observed trends suggest a dynamic liquidity position. While the company demonstrated a strong ability to cover short-term liabilities for a period, the recent decline in the quick ratio indicates a potential weakening of this position that should be monitored.
Cash Ratio
Chipotle Mexican Grill Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | 350,545) | 698,743) | 844,524) | 725,597) | 748,537) | 698,547) | 806,528) | 727,394) | 560,609) | 602,307) | 504,866) | 409,727) | 384,000) | 366,623) | 520,933) | 615,863) | |||||
| Current investments | 698,591) | 722,531) | 701,968) | 689,125) | 674,378) | 668,676) | 683,287) | 692,474) | 734,838) | 851,699) | 851,142) | 652,858) | 515,136) | 417,278) | 240,684) | 240,379) | |||||
| Total cash assets | 1,049,136) | 1,421,274) | 1,546,492) | 1,414,722) | 1,422,915) | 1,367,223) | 1,489,815) | 1,419,868) | 1,295,447) | 1,454,006) | 1,356,008) | 1,062,585) | 899,136) | 783,901) | 761,617) | 856,242) | |||||
| Current liabilities | 1,188,142) | 1,150,064) | 1,132,271) | 1,091,538) | 1,168,768) | 1,037,884) | 1,043,156) | 997,353) | 1,030,625) | 1,087,707) | 982,250) | 894,092) | 921,880) | 817,857) | 831,623) | 833,738) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.88 | 1.24 | 1.37 | 1.30 | 1.22 | 1.32 | 1.43 | 1.42 | 1.26 | 1.34 | 1.38 | 1.19 | 0.98 | 0.96 | 0.92 | 1.03 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Airbnb Inc. | — | 0.83 | 0.60 | 0.69 | 1.04 | 0.99 | 0.71 | 0.78 | 1.01 | 1.12 | 0.76 | 0.87 | 1.21 | 1.20 | 0.88 | 0.95 | |||||
| Booking Holdings Inc. | — | 1.02 | 0.94 | 0.95 | 1.03 | 0.95 | 0.90 | 0.95 | 0.95 | 1.08 | 1.22 | 1.31 | 1.46 | 1.07 | 1.15 | 1.41 | |||||
| DoorDash, Inc. | — | 1.62 | 1.65 | 1.32 | 1.25 | 1.21 | 1.21 | 1.20 | 1.20 | 1.28 | 1.27 | 1.28 | 1.38 | 1.72 | 1.97 | 2.04 | |||||
| McDonald’s Corp. | — | 0.40 | 0.44 | 0.31 | 0.28 | 0.19 | 0.20 | 0.17 | 0.67 | 0.87 | 0.44 | 0.80 | 0.68 | 0.81 | 0.54 | 0.55 | |||||
| Starbucks Corp. | 0.34 | 0.40 | 0.29 | 0.41 | 0.39 | 0.44 | 0.42 | 0.36 | 0.42 | 0.39 | 0.38 | 0.36 | 0.35 | 0.39 | 0.44 | 0.45 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,049,136 ÷ 1,188,142 = 0.88
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates overall stability with fluctuations throughout the observed timeframe. Initially, the ratio experienced a slight decline before exhibiting a consistent upward trend, followed by a recent decrease. This suggests a dynamic relationship between the company’s most liquid assets and its short-term obligations.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The cash ratio began at 1.03 and experienced a decrease to 0.92 by June 30, 2022. A subsequent recovery was observed, with the ratio reaching 0.98 by December 31, 2022. This initial period indicates a moderate level of liquidity, with a slight dip in the ability to cover current liabilities with available cash.
- Growth Phase (Mar 31, 2023 – Jun 30, 2024)
- A significant upward trend is evident from March 31, 2023, to June 30, 2024. The cash ratio increased from 1.19 to a peak of 1.43. This suggests a strengthening liquidity position, with the company demonstrating an increased capacity to meet its short-term obligations using only cash and cash equivalents. This improvement coincided with increases in total cash assets.
- Recent Trend (Sep 30, 2024 – Dec 31, 2025)
- Following the peak, the cash ratio experienced a decline. It decreased to 1.32 by September 30, 2024, and continued to fall to 0.88 by December 31, 2025. This recent downward trend warrants further investigation, as it indicates a weakening ability to cover current liabilities with immediately available cash. The decrease appears to be driven by a more substantial reduction in total cash assets compared to the change in current liabilities.
Overall, the company generally maintained a cash ratio above 1.0 for the majority of the analyzed period, indicating a generally healthy liquidity position. However, the recent decline suggests a potential shift in the company’s liquidity profile that may require monitoring.