Constellation Brands Inc Class A (STZ)

Days of sales outstanding (DSO)

		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
Receivables turnover		22.04	20.30	19.45	18.99	19.38	19.08	17.72	19.08	17.89	17.36	16.66	17.36	20.15	17.23	15.93	21.13	17.35	18.43	15.58	18.75
DSO	days	16.56	17.98	18.76	19.22	18.83	19.13	20.59	19.13	20.41	21.03	21.91	21.02	18.12	21.18	22.91	17.28	21.04	19.80	23.42	19.46

February 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.04
= 16.56

The Days of Sales Outstanding (DSO) ratio for Constellation Brands Inc Class A has shown some fluctuations over the past few quarters. DSO measures the average number of days it takes for a company to collect its accounts receivable.

Looking at the data provided, we see that the DSO has generally been fluctuating within a range of 16.56 days to 23.42 days over the past few quarters. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient cash flow management. On the other hand, a higher DSO may suggest that the company is facing challenges in collecting payments from its customers in a timely manner.

It is important for Constellation Brands Inc Class A to monitor its DSO closely to ensure that it maintains an optimal balance between collecting payments promptly and maintaining good relationships with its customers. By analyzing the trend in DSO over time, the company can identify any potential issues in accounts receivable management and take appropriate actions to improve efficiency and liquidity.