Constellation Brands Inc Class A (STZ)

Payables 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
Payables	US$ in thousands	1,107,100	1,028,800	978,800	1,003,300	941,500	1,008,100	959,100	874,600	899,200	945,400	840,400	821,100	460,000	732,100	651,200	505,500	557,600	676,500	608,600	579,100
Payables turnover		6.27	6.77	7.13	6.93	7.03	6.46	6.58	6.97	6.49	6.16	7.12	7.05	12.68	7.84	8.49	11.29	10.50	8.66	9.62	10.34

February 29, 2024 calculation

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

Payables turnover measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers in a given period. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.

Constellation Brands Inc Class A's payables turnover has fluctuated over the periods provided. The payables turnover ratio ranged from a low of 6.16 to a high of 12.68 during the period. The average payables turnover ratio for the period is approximately 7.91, which suggests that, on average, Constellation Brands Inc Class A pays off its suppliers around 7.91 times in a year.

The upward and downward movements in the payables turnover ratio may be due to various factors, such as changes in the company's purchasing patterns, negotiation terms with suppliers, and the overall management of accounts payable.

It is important to monitor payables turnover over time to assess changes in the company's liquidity, efficiency in managing payables, and relationships with suppliers. An increasing trend in payables turnover could indicate an improvement in cash flow management, while a decreasing trend may signal potential liquidity issues or strains in the supplier network.