Constellation Brands Inc Class A (STZ)

Days of inventory on hand (DOH)

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020
Inventory turnover		3.42	2.34	2.39	2.34	2.39	2.46	2.70	2.48	2.47	2.56	2.73	2.60	2.61	2.70	3.12	2.96	3.21	3.01	3.00	3.08
DOH	days	106.83	155.87	152.96	155.66	152.62	148.67	135.40	147.39	147.97	142.46	133.85	140.13	139.60	135.13	116.98	123.21	113.58	121.31	121.68	118.69

February 28, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.42
= 106.83

Constellation Brands Inc Class A's days of inventory on hand (DOH) has exhibited fluctuations over the past few years. The DOH increased from around 119 days as of May 31, 2020, to a peak of approximately 153 days as of February 28, 2025. This indicates that the company may be carrying excess inventory relative to sales levels during this period.

A high DOH could suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory. However, a sudden increase in DOH could also be influenced by external factors like supply chain disruptions, changes in consumer demand, or production issues.

It is essential for Constellation Brands Inc Class A to closely monitor and manage its inventory levels to ensure optimal working capital management and prevent potential obsolescence or carrying costs associated with excess inventory. Trend analysis and comparisons to industry benchmarks can provide further insights into the effectiveness of the company's inventory management practices.