Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Chipotle Mexican Grill Inc., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Chipotle Mexican Grill Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Chipotle Mexican Grill Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Chipotle Mexican Grill Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Chipotle Mexican Grill Inc. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Chipotle Mexican Grill Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Restaurant operating costs, exclusive of depreciation and amortization | 7,285,557) | 6,572,533) | 5,840,052) | 4,943,553) | 4,443,879) | |
| Inventory | 39,309) | 35,668) | 32,826) | 26,445) | 26,096) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 185.34 | 184.27 | 177.91 | 186.94 | 170.29 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| McDonald’s Corp. | 155.76 | 141.94 | 144.74 | 136.62 | 154.59 | |
| Starbucks Corp. | 14.46 | 10.97 | 12.89 | 11.90 | 12.44 | |
| Inventory Turnover, Sector | ||||||
| Consumer Services | 34.08 | 24.92 | 27.58 | 23.36 | 28.83 | |
| Inventory Turnover, Industry | ||||||
| Consumer Discretionary | 6.99 | 6.67 | 7.04 | 7.48 | 7.72 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Inventory turnover = Restaurant operating costs, exclusive of depreciation and amortization ÷ Inventory
= 7,285,557 ÷ 39,309 = 185.34
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Chipotle Mexican Grill Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Chipotle Mexican Grill Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 9,871,649) | 8,634,652) | 7,547,061) | 5,984,634) | 5,586,369) | |
| Accounts receivable, net | 115,535) | 106,880) | 99,599) | 104,500) | 80,545) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 85.44 | 80.79 | 75.77 | 57.27 | 69.36 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 39.83 | 42.00 | 42.04 | 17.80 | — | |
| Booking Holdings Inc. | 6.57 | 7.67 | 8.07 | 12.85 | 8.97 | |
| McDonald’s Corp. | 3.92 | 4.14 | 5.23 | 3.86 | 4.24 | |
| Starbucks Corp. | 30.38 | 27.44 | 30.92 | 26.62 | 30.15 | |
| Receivables Turnover, Sector | ||||||
| Consumer Services | 11.92 | 12.89 | 14.36 | 12.53 | 11.63 | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 9,871,649 ÷ 115,535 = 85.44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Chipotle Mexican Grill Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Chipotle Mexican Grill Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Restaurant operating costs, exclusive of depreciation and amortization | 7,285,557) | 6,572,533) | 5,840,052) | 4,943,553) | 4,443,879) | |
| Accounts payable | 197,646) | 184,566) | 163,161) | 121,990) | 115,816) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 36.86 | 35.61 | 35.79 | 40.52 | 38.37 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 12.08 | 10.94 | 9.77 | 10.96 | — | |
| Booking Holdings Inc. | 6.14 | 6.82 | 6.91 | 9.25 | 12.16 | |
| McDonald’s Corp. | 7.46 | 7.53 | 7.99 | 9.42 | 7.85 | |
| Starbucks Corp. | 16.92 | 16.57 | 17.06 | 18.50 | 15.99 | |
| Payables Turnover, Sector | ||||||
| Consumer Services | 10.01 | 10.75 | 11.42 | 14.22 | 13.10 | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Restaurant operating costs, exclusive of depreciation and amortization ÷ Accounts payable
= 7,285,557 ÷ 197,646 = 36.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Chipotle Mexican Grill Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Chipotle Mexican Grill Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 1,620,713) | 1,175,837) | 1,381,564) | 1,420,237) | 1,072,204) | |
| Less: Current liabilities | 1,030,625) | 921,880) | 873,682) | 822,199) | 666,593) | |
| Working capital | 590,088) | 253,957) | 507,882) | 598,038) | 405,611) | |
| Revenue | 9,871,649) | 8,634,652) | 7,547,061) | 5,984,634) | 5,586,369) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 16.73 | 34.00 | 14.86 | 10.01 | 13.77 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.51 | 1.22 | 0.99 | 0.89 | — | |
| Booking Holdings Inc. | 5.77 | 2.33 | 1.59 | 0.77 | 3.37 | |
| McDonald’s Corp. | 8.64 | 5.39 | 3.13 | 131.28 | — | |
| Starbucks Corp. | — | — | 18.11 | 51.17 | — | |
| Working Capital Turnover, Sector | ||||||
| Consumer Services | 8.74 | 5.39 | 3.49 | 3.50 | 13.17 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 9,871,649 ÷ 590,088 = 16.73
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Chipotle Mexican Grill Inc. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Average Inventory Processing Period
Chipotle Mexican Grill Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 185.34 | 184.27 | 177.91 | 186.94 | 170.29 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 2 | 2 | 2 | 2 | 2 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| McDonald’s Corp. | 2 | 3 | 3 | 3 | 2 | |
| Starbucks Corp. | 25 | 33 | 28 | 31 | 29 | |
| Average Inventory Processing Period, Sector | ||||||
| Consumer Services | 11 | 15 | 13 | 16 | 13 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Discretionary | 52 | 55 | 52 | 49 | 47 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 185.34 = 2
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Chipotle Mexican Grill Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 85.44 | 80.79 | 75.77 | 57.27 | 69.36 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 4 | 5 | 5 | 6 | 5 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | 9 | 9 | 9 | 21 | — | |
| Booking Holdings Inc. | 56 | 48 | 45 | 28 | 41 | |
| McDonald’s Corp. | 93 | 88 | 70 | 95 | 86 | |
| Starbucks Corp. | 12 | 13 | 12 | 14 | 12 | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | 31 | 28 | 25 | 29 | 31 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 17 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 85.44 = 4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Chipotle Mexican Grill Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | |
| Average receivable collection period | 4 | 5 | 5 | 6 | 5 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 6 | 7 | 7 | 8 | 7 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| McDonald’s Corp. | 95 | 91 | 73 | 98 | 88 | |
| Starbucks Corp. | 37 | 46 | 40 | 45 | 41 | |
| Operating Cycle, Sector | ||||||
| Consumer Services | 42 | 43 | 38 | 45 | 44 | |
| Operating Cycle, Industry | ||||||
| Consumer Discretionary | 72 | 75 | 69 | 66 | 64 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 4 = 6
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Chipotle Mexican Grill Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 36.86 | 35.61 | 35.79 | 40.52 | 38.37 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 10 | 10 | 10 | 9 | 10 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | 30 | 33 | 37 | 33 | — | |
| Booking Holdings Inc. | 59 | 54 | 53 | 39 | 30 | |
| McDonald’s Corp. | 49 | 48 | 46 | 39 | 46 | |
| Starbucks Corp. | 22 | 22 | 21 | 20 | 23 | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | 36 | 34 | 32 | 26 | 28 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 70 | 76 | 78 | 77 | 66 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 36.86 = 10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Chipotle Mexican Grill Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | |
| Average receivable collection period | 4 | 5 | 5 | 6 | 5 | |
| Average payables payment period | 10 | 10 | 10 | 9 | 10 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -4 | -3 | -3 | -1 | -3 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| McDonald’s Corp. | 46 | 43 | 27 | 59 | 42 | |
| Starbucks Corp. | 15 | 24 | 19 | 25 | 18 | |
| Cash Conversion Cycle, Sector | ||||||
| Consumer Services | 6 | 9 | 6 | 19 | 16 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Discretionary | 2 | -1 | -9 | -11 | -2 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 4 – 10 = -4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |