Chipotle Mexican Grill Financial Position Case Study - 1

Chipotle Mexican grill Financial Position - Case Study ExampleThis shows an improvement in the companys performance, as it is indicates an increase in the rate of hark back 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 practice 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 utilise (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 attri butes are related to its ability to offer function 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). On the other hand, Taco Bell stiff low in its operations because it offers lower food quality as compared to its competitors even though its menu remains favorable.The liquid ratio of Chipotle Mexican Grill indicates the profitability measure concerning how effectively and efficiently the firms performance is accredited in terms of the current ratio (Grant, 2009). A good liquidity ratio gives creditors more interest in transacting with the company, as it determines the overall liquidity of a company in terms of business short-term solvency thus, its ability to compensation back its debts as it runs its business