Constellation Brands Inc Class A (STZ)

Fixed asset turnover

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Revenue	US$ in thousands	20,641,100	19,569,700	18,413,100	17,933,500	17,359,400
Property, plant and equipment	US$ in thousands	8,037,000	6,865,200	6,059,600	5,821,600	5,333,000
Fixed asset turnover		2.57	2.85	3.04	3.08	3.26

February 29, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,641,100K ÷ $8,037,000K
= 2.57

Constellation Brands Inc Class A's fixed asset turnover has exhibited a downward trend over the five-year period, decreasing from 3.26 in February 2020 to 2.57 in February 2024. This indicates that the company is generating less revenue relative to its investment in fixed assets over time. A lower fixed asset turnover ratio may suggest inefficiencies in asset utilization or a decrease in sales generated per dollar of investment in fixed assets. It is important for the company to closely monitor and manage its fixed asset turnover to ensure optimal utilization of resources and improve overall operational efficiency.