Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Chipotle Mexican Grill Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Chipotle Mexican Grill Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Gross profit margin
- The gross profit margin exhibits a consistent upward trend from 17.4% in 2020 to 26.67% in 2024. This increase signifies improved efficiency in managing production costs relative to sales revenue over the observed period.
- Operating profit margin
- The operating profit margin shows notable improvement, rising from 4.85% in 2020 to 16.94% in 2024. This trend indicates a strengthening ability to control operating expenses and generate operating income, reflecting enhanced operational effectiveness.
- Net profit margin
- Net profitability has steadily increased, climbing from 5.94% in 2020 to 13.56% in 2024. This growth reflects overall improved profitability after all expenses, including taxes and interest, demonstrating enhanced bottom-line performance.
- Return on equity (ROE)
- The return on equity has more than doubled over the period, advancing from 17.61% in 2020 to 41.97% in 2024. This significant improvement suggests that shareholder value generation has become markedly more efficient and effective.
- Return on assets (ROA)
- Return on assets has increased from 5.95% in 2020 to 16.67% in 2024, indicating better utilization of the company's asset base to generate profits. This upward trajectory demonstrates strengthened asset management and profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Chipotle Mexican Grill Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue shows a consistent and solid upward trend over the five-year period. Starting at approximately 5.98 billion US dollars in 2020, it increases steadily each year, reaching around 11.31 billion US dollars by 2024. This growth reflects a strong expansion in the company's top-line sales.
- Gross Profit
- The gross profit follows a similar upward trajectory as revenue, rising from about 1.04 billion US dollars in 2020 to nearly 3.02 billion US dollars in 2024. The absolute increase in gross profit indicates an effective scaling of operations and potentially improved cost management in relation to sales growth.
- Gross Profit Margin
- The gross profit margin shows a positive trend, improving year-over-year from 17.4% in 2020 to 26.67% in 2024. This improvement in margin suggests enhanced operational efficiency or a successful shift to higher-margin products or pricing strategies. The increase indicates that the company is not only growing its sales but is also improving profitability at the gross level.
- Overall Analysis
- The data reveals a consistent pattern of revenue growth complemented by increasing gross profits and improving gross profit margins. This indicates strengthening financial performance and operational efficiency. Such trends suggest the company is successfully expanding its market presence while managing costs effectively to enhance profitability over the observed period.
Operating Profit Margin
Chipotle Mexican Grill Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Income from Operations
- Income from operations exhibited a consistent and significant upward trend over the analyzed period. Starting at 290,164 thousand US dollars in 2020, it increased substantially each year, reaching 1,916,333 thousand US dollars by 2024. This demonstrates a more than sixfold increase over five years, indicating strong operational growth and enhanced profitability.
- Revenue
- Revenue also showed a steady increase throughout the period under review. Beginning at 5,984,634 thousand US dollars in 2020, revenue rose progressively each year, culminating at 11,313,853 thousand US dollars in 2024. This near doubling of revenue within five years reflects expanding sales and potentially successful market penetration or growth strategies.
- Operating Profit Margin
- The operating profit margin improved consistently and significantly, increasing from 4.85% in 2020 to 16.94% in 2024. This steady increase suggests that the company has not only grown its revenue but has also enhanced operational efficiency and cost management, resulting in higher profitability relative to revenue.
- Overall Analysis
- The data indicates robust financial health and strong growth dynamics. The simultaneous growth in income from operations and revenue, paired with a notable rise in operating profit margin, points to effective management of both top-line expansion and operational costs. Such trends are characteristic of a company strengthening its market position while improving profitability ratios over time.
Net Profit Margin
Chipotle Mexican Grill Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue
- Revenue demonstrates a consistent upward trend, increasing steadily each year from $5,984,634 thousand in 2020 to $11,313,853 thousand in 2024. This represents an overall growth of nearly 89% over the five-year period, indicating strong and sustained expansion in sales.
- Net Income
- Net income also shows a significant and continuous increase throughout the years. Starting at $355,766 thousand in 2020, it rises to $1,534,110 thousand by 2024. This reflects more than a fourfold increase, suggesting improved profitability and operational efficiency over the period.
- Net Profit Margin
- The net profit margin exhibits a steady improvement, moving from 5.94% in 2020 to 13.56% in 2024. The margin nearly doubles, indicating that the company is not only growing its revenues but also becoming more effective at converting sales into profit.
- Overall Analysis
- The data indicates a robust growth trajectory with strong enhancements in both top-line revenue and bottom-line profitability. The consistent rise in net profit margin suggests that the company is managing costs and operations more efficiently, thereby increasing its profitability at a faster rate than revenue growth.
Return on Equity (ROE)
Chipotle Mexican Grill Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Shareholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROE, Sector | ||||||
| Consumer Services | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income has exhibited a consistent and significant upward trend over the five-year period. Beginning at approximately 356 million USD in 2020, net income more than quadrupled to over 1.5 billion USD by the end of 2024. This demonstrates a strong and continuous growth in profitability year-over-year.
- Shareholders’ Equity
- Shareholders’ equity has also shown a steady increase throughout the period. Starting at just over 2 billion USD in 2020, it rose progressively each year to reach nearly 3.7 billion USD by the end of 2024. This suggests successful capital retention and reinvestment strategies contributing to a solid equity base.
- Return on Equity (ROE)
- The return on equity percentage has improved markedly from 17.61% in 2020 to 41.97% in 2024. This upward trajectory indicates increasing efficiency in generating profit from shareholders’ equity. The rapid growth in ROE, particularly notable after 2021, underscores enhanced profitability relative to equity.
- Overall Analysis
- The company demonstrates strong financial performance characterized by robust growth in net income and shareholders’ equity. The consistent increase in ROE suggests effective management in leveraging equity to drive higher profits. These trends collectively point to a financially healthy organization with improving operational effectiveness and shareholder value creation over the analyzed period.
Return on Assets (ROA)
Chipotle Mexican Grill Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROA, Sector | ||||||
| Consumer Services | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Trends
- The net income has exhibited a consistent upward trajectory over the five-year period. Starting at approximately $356 million in 2020, it increased significantly each year, reaching over $1.53 billion by the end of 2024. This represents a more than fourfold increase over the period, indicating robust profitability growth.
- Total Assets Trends
- Total assets have also shown steady growth from about $5.98 billion in 2020 to $9.20 billion in 2024. The increase in total assets suggests expansion in the company's asset base, possibly reflecting investments in property, equipment, or other resources to support its operations and growth.
- Return on Assets (ROA) Trends
- The return on assets percentage has improved consistently, rising from 5.95% in 2020 to 16.67% in 2024. This increasing ROA indicates enhanced efficiency in utilizing assets to generate net income, implying better management performance and operational effectiveness over time.
- Overall Analysis
- Collectively, the data shows a strong positive trend in both profitability and asset management. The substantial increases in net income and total assets, combined with the steady improvement in ROA, reflect solid financial health and growing operational efficiency. These trends underscore the company's ability to effectively leverage its asset base to drive higher earnings consistently over the analyzed period.