In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Chipotle Mexican Grill's net-net working capital per share for the quarter that ended in Jun. 2022 was $-127.75.
The industry rank for Chipotle Mexican Grill's Net-Net Working Capital or its related term are showing as below:
Chipotle Mexican Grill Net-Net Working Capital Historical Data
The historical data trend for Chipotle Mexican Grill's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Chipotle Mexican Grill Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Net-Net Working Capital
-4.71
-3.24
-88.90
-104.27
-113.54
Chipotle Mexican Grill Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Net-Net Working Capital
-109.84
-114.46
-113.54
-121.32
-127.75
Competitive Comparison
For the Restaurants subindustry, Chipotle Mexican Grill's Net-Net Working Capital, along with its competitors' market caps and Net-Net Working Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chipotle Mexican Grill Net-Net Working Capital Distribution
For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Net-Net Working Capital distribution charts can be found below:
* The bar in red indicates where Chipotle Mexican Grill's Net-Net Working Capital falls into.
Chipotle Mexican Grill Net-Net Working Capital Calculation
Chipotle Mexican Grill's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2021 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
Chipotle Mexican Grill (NYSE:CMG) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.
Chipotle Mexican Grill Net-Net Working Capital Related Terms
Thank you for viewing the detailed overview of Chipotle Mexican Grill's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $7.5 billion over the last twelve months. The Mexican concept is entirely company-owned, with a footprint of nearly 3,000 stores at the end of 2021 heavily indexed to the United States, though the firm maintains a small presence in Canada, the U.K., France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.
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