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Chipotle Mexican Grill Financial Strength

: 5 (As of Sep. 2019)
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Chipotle Mexican Grill has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Chipotle Mexican Grill's interest coverage with the available data. Chipotle Mexican Grill's debt to revenue ratio for the quarter that ended in Sep. 2019 was 2.00. As of today, Chipotle Mexican Grill's Altman Z-Score is 6.38.


Competitive Comparison
* 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.


Chipotle Mexican Grill Financial Strength Distribution

* The bar in red indicates where Chipotle Mexican Grill's Financial Strength falls into.



Chipotle Mexican Grill Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Chipotle Mexican Grill's Interest Expense for the months ended in Sep. 2019 was $0 Mil. Its Operating Income for the months ended in Sep. 2019 was $122 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2019 was $2,643 Mil.

Chipotle Mexican Grill's Interest Coverage for the quarter that ended in Sep. 2019 is

GuruFocus does not calculate Chipotle Mexican Grill's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Chipotle Mexican Grill's Debt to Revenue Ratio for the quarter that ended in Sep. 2019 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(166.802 + 2642.737) / 1403.697
=2.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Chipotle Mexican Grill has a Z-score of 6.38, indicating it is in Safe Zones. This implies the Z-Score is strong.

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


Chipotle Mexican Grill  (NYSE:CMG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Chipotle Mexican Grill has the Financial Strength Rank of 5.


Chipotle Mexican Grill Financial Strength Related Terms

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