Constellation Brands Inc Class A (STZ)

Inventory turnover

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Cost of revenue	US$ in thousands	4,894,100	4,944,300	4,683,600	4,113,400	4,148,900
Inventory	US$ in thousands	1,437,200	2,078,300	1,898,700	1,573,200	1,291,100
Inventory turnover		3.41	2.38	2.47	2.61	3.21

February 28, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,894,100K ÷ $1,437,200K
= 3.41

Constellation Brands Inc Class A's inventory turnover has exhibited a declining trend over the past few years. As of February 28, 2021, the inventory turnover ratio stood at 3.21, indicating that the company's inventory was turned over approximately 3.21 times during that period. However, this ratio decreased to 2.61 by February 28, 2022, and further declined to 2.47 by February 28, 2023. The downward trend continued as of February 29, 2024, with the inventory turnover ratio dropping to 2.38.

The decreasing inventory turnover ratio suggests that Constellation Brands Inc Class A may be facing challenges in efficiently managing its inventory levels or experiencing slower sales relative to the amount of inventory held. A lower inventory turnover ratio can indicate inventory obsolescence, overstocking, or declining demand for the company's products.

It is worth noting that the inventory turnover data for February 28, 2025, is unavailable. Further analysis of the inventory turnover trend and comparison with industry benchmarks can provide deeper insights into Constellation Brands Inc Class A's inventory management efficiency and overall operational performance.