Chipotle Mexican Grill Financial Position - Case Study Example

Extract of sample
Chipotle Mexican Grill Financial Position

The return on equity ratio of Chipotle Mexican Grill in 2008 stands at 0.1320 and it increases in the year 2009 to 0.1912 and to a further increase in 2010 to 0.2364. This shows an improvement in the company’s performance, as it is indicates an increase in the rate of return on the shareholders equity that is going up steadily over the years.
More than often, the return on assets ratio gives a measure of effective and efficient utilization of assets in order to produce net profit. It therefore, allows the management an opportunity to enhance the utilization of resources around the company. Chipotle Mexican Grill return on assets in the year 2008 indicates a ratio of 0.3788 and thereafter an increase in the 2009 as the return on assets ratio rose to 0.4987 and a further increase in 2010 to 0.5094, indicating that there was an increase in the returns on the net profit from the assets, as they were effectively utilized (Grant, 2009).
As a restaurant that offers Mexican food, Chipotle Mexican Grill is considered to be the leading among its competitors in the United States market. This attributes are related to its ability to offer services that have got high level of integrity. More so, the services of Chipotle Mexican Grill is accredited as one that is of high quality and has outstanding reputation as a result, the company outshines the rest of its competitors who offer Mexican dishes as it is followed by Baja fresh Mexican grill (Allen, 2011).
...
Download paper

Summary

The return on equity that is evidently increasing in Chipotle Mexican Grill gives a close watch for the keen investors, as it is based on a strong measure that determines the ability of the management to create value for its shareholders…
Author : lenna90
Download 1

Related Essays

Financial
900,000 ?1,600,000 ?1,850,000 ?1,100,000 ?2,225,000 Discount Factor @ 12% Cost of Capital 1.00 0.893 0.797 0.712 0.636 0.567 Present Value (?5,150,000) ?803,700 ?1,275,200 ?1,317,200 ?699,600 ?1,261,575 NPV ?207,275 NPV:-?5,150,000 + ?803,700 + ?1,275,200 + ?1,317,200 + ?699,600 + ?1,261,575 = ?207,275 The Net Present Value of a company is the value of a future number in terms of today. It basically helps in finding out a project’s is profitability. It requires finding out the present value of each future cash flow discounted at a specific value, which is the cost of capital of the project...
10 pages (2510 words) Term Paper
Describe the main duties of an Accountable Manager. How does the holder of this position relate to the financial management?
It also assists him further to understand the objectives fully and other underlying requirements of these objectives. The presence of a person in setting objectives makes such manager more accountable as the objectives are set with full collaboration of such manager. ...
6 pages (1506 words) Coursework
Tax Return Position Paper
The internal revenue code contains landmarks on dates that the code was amended. These landmarks help the taxpayer to trace tax references and materials used in taxation. For example, the internal revenue code of the United States is contained in Title 26 of the United States Code. The United States Code contains tax laws of the federal government. The advantages of reading the internal revenue code are that the taxpayer acquaints him/herself with the best ways of using tax services, other sources and citators. Regulations by the treasury help to interpret and understand the internal revenue...
3 pages (753 words) Essay
Analyse the financial performance & position of Intercontinental Hotel Group plc and explain and evaluate the treatment intangib
Background Information Intercontinental Hotel Group Plc. owns one of the leading brand and chain of hotels and resorts across continents. The group’s registered corporate office is located in Denham, United Kingdom and the group has a history of almost 60 years of delivering the highest level of quality of customer service which has permitted the group to achieve phenomenal growth over the last few decades. The group operates not only by owing hotels and resorts completely and also by entering into franchise agreements with other companies to operate hotels and resources The group has more...
8 pages (2008 words) Essay
'Leases' and its impact on the financial position and performance of companies
Exposure Draft ED/2013/6 'Leases' and its impact on the financial position and performance of companies ...
6 pages (1506 words) Essay
Tax Return Position Paper
Question One Issued by the government’s administrative, judicial and legislative branches through the Internal Revenue Service (IRS), the Treasury Department and Congress, primary tax law sources bear more statutory authority than the secondary sources. The most significant primary sources include the Internal Revenue Code, public laws and income tax treaties (Lederman & Mazza, 2009). Then there are treasury regulations; revenue procedures; revenue rulings; announcements and notices published by the IRS; legislative history; and legal judgment on tax affairs. Treasury regulations usually...
3 pages (753 words) Essay
Accounting Theory:British Petroleum Oil Split in Mexican Gulf 2010
For instance, the positive accounting theory, also known as agency theory, emphasises the Ex Ente (before the event) agreement between the two parties, i.e. an agency and the agent. Notably, this particular theory accounts for the costs to be incurred by the agency, as a consequence to the failure of the agent to perform the delegated authority efficiently (Watts & Zimmerman, 1990). Correspondingly, the behavioural accounting theory argues that key decision makers of an organisation can add value to the company. Delivering the key decision makers of the company with such significance, the...
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!