Constellation Brands Inc Class A (STZ)

Days of inventory on hand (DOH)

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Inventory turnover		3.34	3.50	3.85	3.56	3.49	3.62	3.82	3.68	3.71	3.84	4.47	4.20	4.52	4.17	4.16	4.28	4.26	4.31	4.46	4.01
DOH	days	109.32	104.23	94.89	102.50	104.65	100.94	95.55	99.16	98.40	95.14	81.73	86.82	80.77	87.58	87.75	85.23	85.66	84.66	81.78	91.05

February 29, 2024 calculation

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

The days of inventory on hand (DOH) is a crucial metric that measures the number of days a company holds inventory before selling it. Looking at Constellation Brands Inc Class A's historical trend of DOH, we observe fluctuations in the efficiency of managing inventory levels over time.

From February 2019 to February 2024, Constellation Brands Inc Class A's DOH has ranged from 80.77 days to 109.32 days. The highest DOH of 109.32 days was recorded in February 2024, indicating that the company held inventory for an average of approximately 109 days before selling it. This could suggest potential issues related to inventory management and liquidity.

On the other hand, the lowest DOH of 80.77 days was observed in February 2021, indicating an improvement in inventory turnover efficiency and a quicker conversion of inventory into sales.

Overall, the trend in Constellation Brands Inc Class A's DOH implies fluctuations in inventory management effectiveness over the years. Further analysis of the underlying reasons for these variations, such as changes in demand patterns, production efficiency, or supply chain disruptions, would be essential to understand the company's inventory management performance comprehensively.