Constellation Brands Inc Class A (STZ)

Payables turnover

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Cost of revenue	US$ in thousands	6,938,900	7,682,400	5,835,700	5,830,300	5,831,300
Payables	US$ in thousands	1,107,100	941,500	899,200	460,000	557,600
Payables turnover		6.27	8.16	6.49	12.67	10.46

February 29, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,938,900K ÷ $1,107,100K
= 6.27

Constellation Brands Inc Class A's payables turnover ratio has varied over the past five years. The ratio decreased from 10.46 in Feb 2020 to 6.27 in Feb 2024. This indicates that the company took longer to pay its suppliers in 2024 compared to 2020.

The payables turnover ratio improved in Feb 2023 to 8.16, indicating that the company managed to pay its suppliers more efficiently that year. However, the ratio declined again in Feb 2022 to 6.49 before experiencing a significant increase in Feb 2021 to 12.67.

Overall, the fluctuation in Constellation Brands Inc Class A's payables turnover ratio suggests varying levels of efficiency in managing its accounts payable over the years. It would be important to further investigate the reasons behind these fluctuations to gain a deeper understanding of the company's financial management practices.