Constellation Brands Inc Class A (STZ)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	18,355,600	18,214,200	18,152,200	17,720,700	17,472,300	17,577,000	17,349,600	16,786,900	16,080,300	15,930,800	16,205,800	16,024,100	15,822,800	15,772,700	14,758,900	14,798,600	15,004,300	14,898,600	14,862,300	14,784,200
Property, plant and equipment	US$ in thousands	8,037,000	7,713,500	7,580,300	7,190,100	6,865,200	6,523,800	6,234,000	6,163,300	6,059,600	5,519,300	5,505,400	5,392,200	5,821,600	5,580,700	5,184,900	5,098,200	5,333,000	5,187,200	5,141,600	5,118,000
Fixed asset turnover		2.28	2.36	2.39	2.46	2.55	2.69	2.78	2.72	2.65	2.89	2.94	2.97	2.72	2.83	2.85	2.90	2.81	2.87	2.89	2.89

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $18,355,600K ÷ $8,037,000K
= 2.28

Constellation Brands Inc Class A's fixed asset turnover ratio has shown fluctuations over the past few quarters, ranging from 2.28 to 2.97. The ratio measures how efficiently the company generates revenue from its investments in fixed assets.

The trend indicates a general consistency in utilizing its fixed assets to generate sales, with relatively high turnover ratios compared to industry averages.

However, the slight decline in the most recent quarter may suggest that there is room for improvement in maximizing the productivity of the company's fixed assets. Nevertheless, the overall trend suggests that Constellation Brands Inc Class A has been effectively managing its fixed assets to generate revenue.