Chipotle Mexican Grill has a Cash Ratio of 1.32. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Chipotle Mexican Grill's Cash Ratio or its related term are showing as below:
CMG'
s Cash Ratio Range Over the Past 10 Years
Min: 0.92 Med: 1.32 Max: 3.93
Current: 1.32
During the past 13 years, Chipotle Mexican Grill's highest Cash Ratio was 3.93. The lowest was 0.92. And the median was 1.32.
CMG's Cash Ratio is ranked better than 82.75% of 342
companies
in the Restaurants industry
Industry Median: 0.515
vs CMG: 1.32
* 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.
Competitive Comparison of Chipotle Mexican Grill's Cash Ratio
For the Restaurants subindustry, Chipotle Mexican Grill's Cash Ratio, along with its competitors' market caps and Cash Ratio 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's Cash Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Chipotle Mexican Grill's Cash Ratio falls into.
Chipotle Mexican Grill Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Chipotle Mexican Grill's Cash Ratio for the fiscal year that ended in Dec. 2023 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.
Chipotle Mexican Grill (NYSE:CMG) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Chipotle Mexican Grill Cash Ratio Related Terms
Thank you for viewing the detailed overview of Chipotle Mexican Grill's Cash Ratio 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 $9.9 billion in 2023. The Mexican concept is almost exclusively company-owned, with just two license stores opearted through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, 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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