Constellation Brands Inc Class A (STZ)

Days of inventory on hand (DOH)

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Inventory turnover		3.34	4.05	3.71	4.52	4.25
DOH	days	109.32	90.21	98.40	80.83	85.98

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.34
= 109.32

Constellation Brands Inc Class A's days of inventory on hand (DOH) has shown variation over the past five years. The company's DOH has fluctuated between 80.83 days in Feb 2021 and 109.32 days in Feb 2024. This indicates that the company has, at times, maintained higher levels of inventory on hand relative to its sales.

The increase in DOH from 2021 to 2024 may suggest possible challenges in managing inventory efficiently during that period. A high DOH could tie up capital and increase storage costs, potentially impacting the company's liquidity and profitability.

On the other hand, the decrease in DOH from 2024 to 2022 followed by a slight increase in 2023 might indicate efforts to improve inventory management and streamline operations. A lower DOH generally signifies better inventory turnover and more effective management of working capital.

Overall, Constellation Brands Inc Class A's DOH trend reflects fluctuations in how effectively the company manages its inventory levels, and it could be useful to further investigate the underlying reasons for these fluctuations to assess the impact on the company's financial performance and operational efficiency.