Constellation Brands Inc Class A (STZ)

Activity ratios

Short-term

Turnover ratios

	Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Inventory turnover	—	2.38	2.47	2.61	3.21
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	16.95	17.91	13.98	4.85

Based on the data provided, we can analyze the activity ratios of Constellation Brands Inc Class A as follows:

1. Inventory Turnover: This ratio indicates how effectively the company is managing its inventory. A higher ratio is generally preferred as it implies quicker inventory turnover. Constellation Brands' inventory turnover has decreased from 3.21 in February 28, 2021, to 2.38 in February 29, 2024. This suggests that the company is taking more time to sell its inventory, which could potentially lead to excess inventory or obsolescence issues.

2. Receivables Turnover: This ratio measures how efficiently a company is collecting its receivables from customers. The absence of data for this ratio indicates that we do not have visibility into the company's receivables turnover performance.

3. Payables Turnover: This ratio assesses how efficiently a company is managing its payables by evaluating how quickly the company pays off its creditors. The lack of data for this ratio suggests that details regarding Constellation Brands' payables turnover are not available in the dataset provided.

4. Working Capital Turnover: This ratio indicates how efficiently a company is using its working capital to generate sales revenue. The working capital turnover ratio has shown an increasing trend from 4.85 in February 28, 2021, to 16.95 in February 29, 2024. This indicates that Constellation Brands has been able to generate more revenue per unit of working capital over the years, reflecting improved efficiency in utilizing its working capital.

In summary, based on the available data, Constellation Brands Inc Class A has experienced a decline in inventory turnover, while the working capital turnover has shown an improving trend, suggesting increased efficiency in generating sales revenue relative to working capital utilization. However, without data on receivables and payables turnover, a comprehensive assessment of the company's overall activity efficiency is limited.

Average number of days

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Days of inventory on hand (DOH)	days	—	153.43	147.97	139.60	113.58
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Constellation Brands Inc Class A shows an increasing trend in its days of inventory on hand (DOH) over the past few years, from 113.58 days on February 28, 2021, to 153.43 days on February 29, 2024. This indicates that the company is holding its inventory for a longer period, which could be due to various factors such as changes in demand, production issues, or inefficiencies in inventory management.

The days of sales outstanding (DSO) and the number of days of payables data are not available for all the years provided, which limits the ability to analyze the company's accounts receivable and accounts payable turnover efficiency. However, based on the data provided, it seems that information on the collection period for receivables (DSO) and payment period for payables is not available or not disclosed.

Overall, while the increase in days of inventory on hand may raise concerns about inventory management efficiency, further data on accounts receivable and accounts payable turnover would provide a more comprehensive understanding of Constellation Brands Inc Class A's working capital management performance.

Long-term

	Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Fixed asset turnover	—	—	1.38	1.46	1.48
Total asset turnover	—	0.39	0.38	0.34	0.32

The Fixed Asset Turnover ratio is used to evaluate a company's ability to generate sales from its investment in fixed assets. Constellation Brands Inc Class A's Fixed Asset Turnover ratio has shown a slight decline over the years, decreasing from 1.48 in February 2021 to 1.38 in February 2023. This trend indicates that the company may be becoming less efficient in utilizing its fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio measures how efficiently a company is using its assets to generate revenue. Constellation Brands Inc Class A's Total Asset Turnover ratio has been increasing steadily, from 0.32 in February 2021 to 0.39 in February 2024. This suggests that the company has been improving its efficiency in generating sales relative to its total asset base.

Overall, while the Fixed Asset Turnover ratio has shown a slight decline, the increasing trend in the Total Asset Turnover ratio indicates an improvement in the company's overall efficiency in utilizing its assets to generate revenue over the years.