Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Chipotle Mexican Grill Inc., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The solvency position, as indicated by the presented ratios, demonstrates a generally improving trend from 2022 through 2024, followed by a shift in 2025. Leverage metrics suggest a decreasing reliance on debt financing during this period, though 2025 shows a reversal of this trend. Coverage ratios consistently indicate a strong ability to meet fixed and interest obligations.
- Debt to Equity
- Information for this ratio is unavailable for all periods. However, the available figures for debt to equity including operating lease liability show an initial increase from 1.53 in 2021 to 1.58 in 2022. This is followed by a decline to 1.32 in 2023 and further to 1.24 in 2024, before increasing significantly to 1.79 in 2025. This suggests a growing proportion of equity financing until 2024, with a subsequent increase in debt relative to equity in the most recent year.
- Debt to Capital
- Similar to debt to equity, the debt to capital ratio (including operating lease liability) exhibits a decreasing trend from 0.61 in 2021 and 2022 to 0.57 in 2023 and 0.55 in 2024. This indicates a strengthening capital structure with a lower proportion of debt. However, this trend reverses in 2025, with the ratio increasing to 0.64.
- Debt to Assets
- The debt to assets ratio (including operating lease liability) mirrors the trends observed in debt to capital, decreasing from 0.53 in 2021 and 0.54 in 2022 to 0.50 in 2023 and 0.49 in 2024. This suggests a decreasing proportion of assets financed by debt. The ratio then increases to 0.56 in 2025.
- Financial Leverage
- Financial leverage decreased from 2.90 in 2021 to 2.52 in 2024, indicating a reduction in the use of debt to amplify returns. However, the ratio increased to 3.18 in 2025, suggesting a renewed reliance on leverage.
- Fixed Charge Coverage
- Fixed charge coverage demonstrates a consistent and positive trend, increasing from 3.23 in 2021 to a peak of 5.13 in 2024. While still strong, the ratio decreased slightly to 4.69 in 2025. This indicates a consistently strong ability to cover fixed charges, though with a minor reduction in the margin of safety in the latest period.
Overall, the period from 2022 to 2024 suggests improving solvency metrics, with decreasing leverage and consistently strong coverage ratios. The 2025 figures, however, indicate a potential shift towards increased debt financing and a slight weakening in coverage, warranting further investigation.
Debt Ratios
Coverage Ratios
Debt to Equity
Chipotle Mexican Grill Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Shareholders’ equity | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Airbnb Inc. | — | 0.24 | 0.24 | 0.36 | 0.42 | |
| Booking Holdings Inc. | — | — | — | 4.51 | 1.77 | |
| DoorDash, Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Consumer Services | — | 16.16 | 28.03 | 24.19 | 7.90 | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | — | 1.10 | 1.34 | 1.51 | 1.50 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 0 ÷ 2,830,607 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals trends in shareholders’ equity, though corresponding debt figures are absent, limiting a complete solvency assessment. The debt-to-equity ratio cannot be calculated without total debt values. However, the changes in shareholders’ equity offer some insight.
- Shareholders’ Equity
- Shareholders’ equity experienced a consistent increase from 2021 to 2023, rising from US$2,297,374 thousand to US$3,062,207 thousand. This represents a growth of approximately 33.3% over the three-year period. A further increase was observed in 2024, reaching US$3,655,546 thousand. However, in 2025, shareholders’ equity decreased to US$2,830,607 thousand, representing a decline of approximately 22.6% from the 2024 peak.
The absence of total debt figures prevents a meaningful analysis of the debt-to-equity ratio. Without knowing the level of debt, it is impossible to determine the company’s financial leverage or its ability to meet its long-term obligations. The fluctuations in shareholders’ equity alone do not provide a sufficient basis for evaluating the company’s solvency position.
Future analysis should include total debt values for each period to enable the calculation and interpretation of the debt-to-equity ratio, providing a more comprehensive assessment of the company’s financial risk.
Debt to Equity (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Current operating lease liabilities | 302,380) | 277,836) | 248,074) | 236,248) | 218,713) | |
| Long-term operating lease liabilities | 4,773,434) | 4,262,782) | 3,803,551) | 3,495,162) | 3,301,601) | |
| Total debt (including operating lease liability) | 5,075,814) | 4,540,618) | 4,051,625) | 3,731,410) | 3,520,314) | |
| Shareholders’ equity | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.79 | 1.24 | 1.32 | 1.58 | 1.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | — | 0.27 | 0.28 | 0.42 | 0.51 | |
| Booking Holdings Inc. | — | — | — | 4.75 | 1.85 | |
| DoorDash, Inc. | — | 0.07 | 0.08 | 0.08 | 0.09 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | — | 22.23 | 38.47 | 33.45 | 11.35 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | — | 1.39 | 1.69 | 1.90 | 1.87 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 5,075,814 ÷ 2,830,607 = 1.79
2 Click competitor name to see calculations.
The debt to equity ratio, inclusive of operating lease liabilities, demonstrates a fluctuating pattern over the five-year period. Initially, the ratio increased for two consecutive years before declining and then increasing again in the most recent year presented.
- Overall Trend
- From 2021 to 2022, the debt to equity ratio rose from 1.53 to 1.58, indicating a greater reliance on debt financing relative to equity. This trend reversed in the following two years, with the ratio decreasing to 1.32 in 2023 and further to 1.24 in 2024. However, in 2025, the ratio increased significantly to 1.79, exceeding the levels observed in the earlier years.
- Debt Levels
- Total debt, including operating lease liability, consistently increased throughout the period, rising from US$3,520,314 thousand in 2021 to US$5,075,814 thousand in 2025. This consistent growth in debt contributed to the fluctuations in the debt to equity ratio.
- Equity Levels
- Shareholders’ equity also generally increased, moving from US$2,297,374 thousand in 2021 to US$3,655,546 thousand in 2024. However, equity decreased in 2025 to US$2,830,607 thousand. The decrease in equity in 2025, coupled with continued debt growth, is the primary driver of the ratio’s increase in that year.
The observed increase in the debt to equity ratio in 2025 warrants further investigation. While the company has demonstrated an ability to manage increasing debt levels in prior periods, the recent shift, combined with a decrease in equity, suggests a potential increase in financial risk. The fluctuations indicate a dynamic capital structure, potentially influenced by investment strategies, financing decisions, and profitability.
Debt to Capital
Chipotle Mexican Grill Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Shareholders’ equity | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Total capital | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Airbnb Inc. | — | 0.19 | 0.20 | 0.26 | 0.29 | |
| Booking Holdings Inc. | — | 1.32 | 1.24 | 0.82 | 0.64 | |
| DoorDash, Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | — | 1.10 | 1.13 | 1.19 | 1.15 | |
| Starbucks Corp. | 2.01 | 1.92 | 2.08 | 2.41 | 1.57 | |
| Debt to Capital, Sector | ||||||
| Consumer Services | — | 0.94 | 0.97 | 0.96 | 0.89 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | — | 0.52 | 0.57 | 0.60 | 0.60 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 2,830,607 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals trends in the company’s capital structure over a five-year period. Specifically, the analysis focuses on the debt to capital ratio, which indicates the proportion of financing derived from debt relative to total capital.
- Total Capital
- Total capital exhibited an increasing trend from 2021 to 2024. Beginning at US$2,297,374 thousand in 2021, it rose to US$2,368,023 thousand in 2022, then increased significantly to US$3,062,207 thousand in 2023, and peaked at US$3,655,546 thousand in 2024. A subsequent decrease to US$2,830,607 thousand was observed in 2025.
- Debt to Capital Ratio
- The debt to capital ratio is not populated for the years 2021, 2022, and 2023. Values begin to appear in 2024 and 2025. The ratio is calculated based on the available total capital figures. The ratio for 2024 is not available, but the ratio for 2025 is also not available. The absence of data for the initial years limits a comprehensive trend analysis. The lack of total debt values prevents calculation of the ratio for the earlier periods.
The observed increase in total capital from 2021 to 2024 suggests potential reinvestment of earnings, equity issuance, or other capital-raising activities. The subsequent decline in 2025 warrants further investigation to determine the underlying cause, such as share repurchases or asset sales. Without the corresponding debt figures, a complete assessment of the company’s financial leverage and risk profile is not possible.
Further analysis would benefit from the inclusion of total debt figures for all periods to allow for a complete calculation and trend analysis of the debt to capital ratio. This would provide a more comprehensive understanding of the company’s financing structure and its evolution over time.
Debt to Capital (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Current operating lease liabilities | 302,380) | 277,836) | 248,074) | 236,248) | 218,713) | |
| Long-term operating lease liabilities | 4,773,434) | 4,262,782) | 3,803,551) | 3,495,162) | 3,301,601) | |
| Total debt (including operating lease liability) | 5,075,814) | 4,540,618) | 4,051,625) | 3,731,410) | 3,520,314) | |
| Shareholders’ equity | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Total capital (including operating lease liability) | 7,906,421) | 8,196,164) | 7,113,832) | 6,099,433) | 5,817,688) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.64 | 0.55 | 0.57 | 0.61 | 0.61 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | — | 0.21 | 0.22 | 0.30 | 0.34 | |
| Booking Holdings Inc. | — | 1.30 | 1.22 | 0.83 | 0.65 | |
| DoorDash, Inc. | — | 0.06 | 0.07 | 0.07 | 0.08 | |
| McDonald’s Corp. | — | 1.08 | 1.10 | 1.14 | 1.10 | |
| Starbucks Corp. | 1.44 | 1.41 | 1.48 | 1.58 | 1.29 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | — | 0.96 | 0.97 | 0.97 | 0.92 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | — | 0.58 | 0.63 | 0.65 | 0.65 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,075,814 ÷ 7,906,421 = 0.64
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, demonstrates a fluctuating pattern over the five-year period. Initially, the ratio remained consistent before exhibiting a decline and subsequent increase.
- Overall Trend
- From 2021 to 2023, the Debt to Capital ratio decreased from 0.61 to 0.57. This indicates a strengthening capital structure with a reduced reliance on debt financing relative to total capital. However, this trend reversed in subsequent years, with the ratio increasing to 0.64 by 2025.
- Year-over-Year Changes
- Between 2021 and 2022, the ratio remained stable at 0.61, suggesting consistent financial leverage. A decrease was then observed from 2022 to 2023, falling to 0.57, driven by a proportionally larger increase in Total Capital compared to Total Debt. From 2023 to 2024, the ratio continued to decline, reaching 0.55, indicating further improvement in the capital structure. The most significant change occurred between 2024 and 2025, with the ratio increasing to 0.64. This rise is attributable to a greater percentage increase in Total Debt than in Total Capital.
- Debt and Capital Components
- Total debt, including operating lease liability, increased consistently throughout the period, rising from US$3,520,314 thousand in 2021 to US$5,075,814 thousand in 2025. Total capital also generally increased, but at a varying rate. The increase in Total Capital was most pronounced between 2022 and 2023, and again between 2023 and 2024. The decrease in Total Capital observed between 2024 and 2025 likely contributed to the ratio’s increase during that period.
The recent increase in the Debt to Capital ratio warrants further investigation to determine the underlying reasons and potential implications for the company’s financial risk profile.
Debt to Assets
Chipotle Mexican Grill Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total assets | 8,994,531) | 9,204,374) | 8,044,362) | 6,927,504) | 6,652,958) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Airbnb Inc. | — | 0.10 | 0.10 | 0.12 | 0.14 | |
| Booking Holdings Inc. | — | 0.60 | 0.59 | 0.49 | 0.46 | |
| DoorDash, Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | — | 0.73 | 0.73 | 0.74 | 0.66 | |
| Starbucks Corp. | 0.50 | 0.50 | 0.52 | 0.53 | 0.47 | |
| Debt to Assets, Sector | ||||||
| Consumer Services | — | 0.47 | 0.49 | 0.49 | 0.46 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | — | 0.32 | 0.34 | 0.35 | 0.36 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 8,994,531 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a fluctuating debt-to-assets ratio over the observed period. While total debt figures are unavailable, the trend in total assets, coupled with the calculated ratio, allows for an assessment of the company’s solvency position.
- Total Assets Trend
- Total assets increased from US$6,652,958 thousand in 2021 to US$6,927,504 thousand in 2022, representing a moderate growth rate. This upward trend continued with assets reaching US$8,044,362 thousand in 2023, and further increasing to US$9,204,374 thousand in 2024. A slight decrease in total assets is then observed in 2025, with a value of US$8,994,531 thousand.
- Debt-to-Assets Ratio Trend
- The debt-to-assets ratio is not available for the years 2021, 2022, and 2023. However, the ratio is available for 2024 and 2025. The ratio for 2024 is not provided, but the ratio for 2025 is also not provided. The absence of this ratio for most of the period limits a comprehensive assessment of the company’s leverage. Without the debt figures, it is impossible to determine the extent to which asset growth is financed by debt or retained earnings.
The observed decrease in total assets in 2025 warrants further investigation to determine its cause and potential implications for the company’s financial health. The lack of debt information for the majority of the period hinders a complete solvency analysis, and obtaining this information is recommended for a more thorough evaluation.
Debt to Assets (including Operating Lease Liability)
Chipotle Mexican Grill Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Current operating lease liabilities | 302,380) | 277,836) | 248,074) | 236,248) | 218,713) | |
| Long-term operating lease liabilities | 4,773,434) | 4,262,782) | 3,803,551) | 3,495,162) | 3,301,601) | |
| Total debt (including operating lease liability) | 5,075,814) | 4,540,618) | 4,051,625) | 3,731,410) | 3,520,314) | |
| Total assets | 8,994,531) | 9,204,374) | 8,044,362) | 6,927,504) | 6,652,958) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.56 | 0.49 | 0.50 | 0.54 | 0.53 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | — | 0.11 | 0.11 | 0.15 | 0.18 | |
| Booking Holdings Inc. | — | 0.62 | 0.62 | 0.52 | 0.48 | |
| DoorDash, Inc. | — | 0.04 | 0.05 | 0.05 | 0.06 | |
| McDonald’s Corp. | — | 0.94 | 0.95 | 0.97 | 0.92 | |
| Starbucks Corp. | 0.83 | 0.82 | 0.83 | 0.84 | 0.75 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | — | 0.65 | 0.67 | 0.67 | 0.67 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | — | 0.41 | 0.43 | 0.44 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,075,814 ÷ 8,994,531 = 0.56
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a fluctuating pattern over the five-year period. Initially, the ratio exhibited an increase followed by a decrease, and then a subsequent rise again.
- Overall Trend
- From 2021 to 2023, the ratio increased from 0.53 to 0.54, then decreased to 0.50 in 2023. This suggests a period of initially increasing leverage followed by a reduction in relative debt. However, in 2024, the ratio further decreased to 0.49, before increasing to 0.56 in 2025.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2024 and 2025, with the ratio rising from 0.49 to 0.56. This indicates a more substantial increase in debt relative to assets during this period. The decrease from 2022 to 2023 was relatively small, moving from 0.54 to 0.50. The decrease from 2023 to 2024 was also small, moving from 0.50 to 0.49.
- Debt and Asset Movements
- Total debt consistently increased throughout the period, rising from US$3,520,314 thousand in 2021 to US$5,075,814 thousand in 2025. Total assets also generally increased, but not at the same rate as debt, particularly between 2024 and 2025 where assets decreased slightly. This disparity in growth rates contributes to the observed fluctuations in the Debt to Assets ratio.
The increase in the ratio in 2025 warrants further investigation to understand the drivers behind the increased leverage. The period between 2021 and 2024 showed relative stability, with the ratio remaining within a narrow range, but the 2025 increase suggests a potential shift in the company’s capital structure.
Financial Leverage
Chipotle Mexican Grill Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 8,994,531) | 9,204,374) | 8,044,362) | 6,927,504) | 6,652,958) | |
| Shareholders’ equity | 2,830,607) | 3,655,546) | 3,062,207) | 2,368,023) | 2,297,374) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.18 | 2.52 | 2.63 | 2.93 | 2.90 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Airbnb Inc. | — | 2.49 | 2.53 | 2.88 | 2.87 | |
| Booking Holdings Inc. | — | — | — | 9.12 | 3.83 | |
| DoorDash, Inc. | — | 1.65 | 1.59 | 1.45 | 1.46 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Consumer Services | — | 34.15 | 57.76 | 49.57 | 17.02 | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | — | 3.44 | 3.95 | 4.32 | 4.22 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 8,994,531 ÷ 2,830,607 = 3.18
2 Click competitor name to see calculations.
The financial leverage ratio exhibited fluctuations over the five-year period. Initially, the ratio increased modestly, then decreased, followed by a notable increase in the most recent year presented.
- Overall Trend
- The financial leverage ratio began at 2.90 in 2021 and rose to 2.93 in 2022, indicating a slight increase in the proportion of assets financed by debt or other non-equity sources. A subsequent decline was observed in 2023, with the ratio falling to 2.63, suggesting a reduction in financial leverage. This downward trend continued into 2024, reaching a low of 2.52. However, in 2025, the ratio increased significantly to 3.18, representing the highest level observed during the analyzed period.
- Year-over-Year Changes
- The largest year-over-year increase in financial leverage occurred between 2024 and 2025, with a change of 0.66. The increase from 2021 to 2022 was minimal, at 0.03. The most substantial decrease occurred between 2022 and 2023, with a reduction of 0.29, and again between 2023 and 2024, with a reduction of 0.11.
- Relationship to Assets and Equity
- Total assets increased consistently from 2021 to 2024, before decreasing slightly in 2025. Shareholders’ equity also generally increased, with a notable rise between 2022 and 2024, but experienced a decrease in 2025. The interplay between these changes, alongside the fluctuations in financial leverage, suggests shifts in the company’s capital structure and financing strategies.
The increase in financial leverage in 2025 warrants further investigation to understand the underlying reasons, such as increased debt financing or a decrease in equity. The prior decline in leverage from 2022 to 2024 may have indicated a strengthening of the company’s financial position, but this trend was reversed in the final year.
Interest Coverage
Chipotle Mexican Grill Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,535,761) | 1,534,110) | 1,228,737) | 899,101) | 652,984) | |
| Add: Income tax expense | 473,758) | 476,120) | 391,769) | 282,430) | 159,779) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 2,009,519) | 2,010,230) | 1,620,506) | 1,181,531) | 812,763) | |
| Solvency Ratio | ||||||
| Interest coverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Airbnb Inc. | — | 139.79 | 26.33 | 83.88 | 0.31 | |
| Booking Holdings Inc. | — | 6.63 | 7.11 | 11.03 | 5.39 | |
| DoorDash, Inc. | — | — | — | -698.50 | -32.07 | |
| McDonald’s Corp. | — | 7.87 | 8.73 | 7.48 | 8.70 | |
| Starbucks Corp. | 5.62 | 9.84 | 10.82 | 9.76 | 12.40 | |
| Interest Coverage, Sector | ||||||
| Consumer Services | — | 9.30 | 9.51 | 9.43 | 7.55 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | — | 15.00 | 12.23 | 9.30 | 13.23 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,009,519 ÷ 0 = —
2 Click competitor name to see calculations.
The information presents trends in earnings before interest and tax (EBIT) over a five-year period. Interest expense and the resulting interest coverage ratio are not populated within the provided information.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrates a consistent upward trend from 2021 to 2023. In 2021, EBIT was US$812,763 thousand. This increased to US$1,181,531 thousand in 2022, and further to US$1,620,506 thousand in 2023. The rate of increase slowed in 2024, with EBIT reaching US$2,010,230 thousand. A slight decrease in EBIT is observed in 2025, with a value of US$2,009,519 thousand. Despite this minor decline, EBIT remains significantly higher in 2025 than in any previous year within the observed period.
Without information on interest expense, a comprehensive assessment of the company’s ability to meet its interest obligations is not possible. The absence of interest expense figures prevents the calculation and analysis of the interest coverage ratio. Consequently, no conclusions can be drawn regarding the company’s solvency based on this specific metric.
- Interest Expense
- Interest expense is not reported for any of the years presented. This lack of information is a significant limitation in assessing the company’s financial risk and its ability to service its debt.
- Interest Coverage
- The interest coverage ratio is not reported for any of the years presented. Calculation of this ratio requires both EBIT and interest expense, and the absence of the latter precludes its determination. Therefore, no analysis of the company’s ability to cover its interest obligations can be performed.
Fixed Charge Coverage
Chipotle Mexican Grill Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,535,761) | 1,534,110) | 1,228,737) | 899,101) | 652,984) | |
| Add: Income tax expense | 473,758) | 476,120) | 391,769) | 282,430) | 159,779) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 2,009,519) | 2,010,230) | 1,620,506) | 1,181,531) | 812,763) | |
| Add: Operating lease cost | 544,367) | 486,598) | 436,313) | 397,112) | 364,314) | |
| Earnings before fixed charges and tax | 2,553,886) | 2,496,828) | 2,056,819) | 1,578,643) | 1,177,077) | |
| Interest expense | —) | —) | —) | —) | —) | |
| Operating lease cost | 544,367) | 486,598) | 436,313) | 397,112) | 364,314) | |
| Fixed charges | 544,367) | 486,598) | 436,313) | 397,112) | 364,314) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.69 | 5.13 | 4.71 | 3.98 | 3.23 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Airbnb Inc. | — | 44.26 | 15.91 | 20.69 | 0.42 | |
| Booking Holdings Inc. | — | 5.96 | 6.09 | 8.12 | 3.82 | |
| DoorDash, Inc. | — | 2.51 | -3.94 | -15.86 | -6.02 | |
| McDonald’s Corp. | — | 4.35 | 4.62 | 3.92 | 4.32 | |
| Starbucks Corp. | 1.95 | 3.17 | 3.51 | 3.08 | 3.61 | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | — | 4.74 | 4.61 | 4.03 | 3.55 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | — | 5.95 | 4.95 | 3.65 | 5.60 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,553,886 ÷ 544,367 = 4.69
2 Click competitor name to see calculations.
The company demonstrates a generally positive trend in its ability to cover fixed charges over the five-year period. Earnings before fixed charges and tax increased consistently, while fixed charges also increased, though at a slower rate, resulting in improved coverage ratios.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax exhibited a consistent upward trajectory, increasing from US$1,177,077 thousand in 2021 to US$2,553,886 thousand in 2025. This represents a substantial overall increase, indicating improved operational profitability before considering the obligations related to fixed charges.
- Fixed Charges
- Fixed charges also increased over the period, rising from US$364,314 thousand in 2021 to US$544,367 thousand in 2025. However, the rate of increase in fixed charges was less pronounced than the growth in earnings before fixed charges and tax, suggesting effective management of these obligations relative to overall earnings.
- Fixed Charge Coverage
- The fixed charge coverage ratio improved from 3.23 in 2021 to 5.13 in 2024, indicating a strengthening ability to meet fixed financing and lease obligations. While the ratio decreased slightly to 4.69 in 2025, it remained significantly higher than the level observed in 2021. This suggests a robust financial position with a comfortable margin of safety regarding fixed charge commitments. The peak coverage in 2024 suggests a particularly strong capacity to service fixed obligations during that year.
Overall, the observed trends suggest a strengthening solvency position. The company’s earnings growth outpaced the growth in fixed charges, leading to a consistently healthy and improving fixed charge coverage ratio.