Chipotle Mexican Grill Piotroski F-Score

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep19) TTM:

Last Year (Sep18) TTM:

Net Income was 32.019 + 88.132 + 91.028 + 98.582 = $310 Mil. Cash Flow from Operations was 129.055 + 182.581 + 117.934 + 234.528 = $664 Mil. Revenue was 1225.061 + 1308.217 + 1434.231 + 1403.697 = $5,371 Mil. Gross Profit was 208.309 + 274.495 + 299.662 + 291.888 = $1,074 Mil. Average Total Assets from the begining of this year (Sep18) to the end of this year (Sep19) was (2230.872 + 2265.518 + 4625.482 + 4659.307 + 4937.937) / 5 = $3743.8232 Mil. Total Assets at the begining of this year (Sep18) was $2,231 Mil. Long-Term Debt & Capital Lease Obligation was $2,643 Mil. Total Current Assets was $955 Mil. Total Current Liabilities was $634 Mil.

Net Income was 43.793 + 59.446 + 46.884 + 38.204 = $188 Mil. Revenue was 1110.1 + 1148.397 + 1266.52 + 1225.007 = $4,750 Mil. Gross Profit was 165.07 + 224.294 + 249.639 + 228.75 = $868 Mil. Average Net Income from the begining of last year (Sep17) to the end of last year (Sep18) was (2064.377 + 2045.692 + 2097.444 + 2128.622 + 2230.872) / 5 = $2113.4014 Mil. Total Assets at the begining of last year (Sep17) was $2,064 Mil. Long-Term Debt & Capital Lease Obligation was $0 Mil. Total Current Assets was $793 Mil. Total Current Liabilities was $403 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chipotle Mexican Grill's current Net Income (TTM) was 310. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chipotle Mexican Grill's current Cash Flow from Operations (TTM) was 664. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

Chipotle Mexican Grill's return on assets of this year was 0.13885198. Chipotle Mexican Grill's return on assets of last year was 0.09122704. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Chipotle Mexican Grill's current Net Income (TTM) was 310. Chipotle Mexican Grill's current Cash Flow from Operations (TTM) was 664. ==> 664 > 310 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Chipotle Mexican Grill's gearing of this year was 0.70589258. Chipotle Mexican Grill's gearing of last year was 0. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Chipotle Mexican Grill's current ratio of this year was 1.50587916. Chipotle Mexican Grill's current ratio of last year was 1.96896367. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Chipotle Mexican Grill's number of shares in issue this year was 28.4. Chipotle Mexican Grill's number of shares in issue last year was 28. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Chipotle Mexican Grill's gross margin of this year was 0.200021. Chipotle Mexican Grill's gross margin of last year was 0.18268392. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Chipotle Mexican Grill's asset turnover of this year was 2.40767108. Chipotle Mexican Grill's asset turnover of last year was 2.30094794. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chipotle Mexican Grill has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Chipotle Mexican Grill  (NYSE:CMG) Piotroski F-Score Explanation