Constellation Brands Inc Class A (STZ)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	6,938,900	6,961,900	6,977,400	6,949,000	6,622,100	6,516,200	6,307,100	6,097,000	5,835,700	5,827,000	5,980,000	5,791,800	5,834,700	5,738,100	5,525,800	5,706,600	5,852,700	5,858,300	5,853,000	5,989,200
Inventory	US$ in thousands	2,078,300	1,988,000	1,814,000	1,951,400	1,898,700	1,802,000	1,651,000	1,656,400	1,573,200	1,518,900	1,339,000	1,377,600	1,291,100	1,376,900	1,328,400	1,332,600	1,373,600	1,358,800	1,311,400	1,494,100
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

February 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,938,900K ÷ $2,078,300K
= 3.34

Constellation Brands Inc.'s inventory turnover ratio has shown some fluctuations over the past few quarters, ranging from a low of 3.34 to a high of 4.52. The overall trend indicates that the company is efficiently managing its inventory levels and turning over its inventory multiple times during the year.

The average inventory turnover ratio for the period under review is 3.97. This suggests that, on average, Constellation Brands Inc. is selling and replacing its inventory approximately 3.97 times over the course of a year. A higher inventory turnover ratio generally indicates that the company is selling its goods more quickly, which can be a positive sign of operational efficiency.

It is worth noting that there was a noticeable increase in inventory turnover ratio in the third quarter of 2021, reaching a peak of 4.52. This spike may indicate that the company had more efficient inventory management during that period, potentially due to better demand forecasting, effective inventory control, or streamlined supply chain operations.

Overall, Constellation Brands Inc.'s inventory turnover ratio reflects a generally healthy and efficient inventory management strategy, contributing to the company's overall financial performance.