Constellation Brands Inc Class A (STZ)

Days of inventory on hand (DOH)

		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	Feb 29, 2020
Inventory turnover		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	3.05
DOH	days	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	119.61

November 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.34
= 155.87

Constellation Brands Inc Class A's days of inventory on hand (DOH) has shown varying trends over the past few years. From February 2019 to November 2024, the DOH increased initially from around 119 days to approximately 155 days. This indicates that the company has been holding inventory for a longer period, which could tie up working capital and increase carrying costs.

The DOH fluctuated throughout the period, with some peaks and troughs. Notably, there was a significant increase in DOH from around May 2021 to May 2022, suggesting potential challenges in managing inventory levels efficiently during that period. However, there was a slight decrease from August 2023 to November 2023, indicating potential improvements in inventory management.

The latest data point in November 2024 shows a DOH of 155.87 days, which is among the highest observed during the period analyzed. This may raise concerns about the company's inventory management practices, as a higher DOH could indicate excess inventory, obsolete products, or inefficiencies in the supply chain.

Overall, Constellation Brands Inc Class A's DOH trend suggests a need for close monitoring and potential optimization of inventory management processes to ensure efficient use of resources and improve working capital efficiency.