Constellation Brands Inc Class A (STZ)

Short-term

Turnover ratios

The inventory turnover ratio measures how efficiently a company is managing its inventory levels by showing how many times the company sold and replaced its inventory during a specific period. For Constellation Brands Inc Class A, the inventory turnover ratio fluctuated over the years, ranging from a low of 2.34 to a high of 3.42. This indicates some variability in the company's ability to sell and replace inventory efficiently.

The receivables turnover ratio, which indicates how many times a company collects its accounts receivable in a given period, was not provided for Constellation Brands Inc Class A in the data provided, which limits our ability to assess the company's effectiveness in managing its accounts receivable.

Similarly, the payables turnover ratio, which reflects how quickly a company pays off its suppliers, was not available for Constellation Brands Inc Class A in the data provided, hindering our analysis of the company's payment practices.

The working capital turnover ratio, which measures how effectively a company is using its working capital to generate revenue, showed significant fluctuations for Constellation Brands Inc Class A over the reporting periods. The ratio ranged from a low of 4.85 to a high of 57.26, indicating varying levels of efficiency in utilizing working capital to generate sales during the years covered.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Constellation Brands Inc Class A's operational efficiency and financial management, the lack of data on receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data regarding Constellation Brands Inc Class A, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measures how many days, on average, the company holds inventory before selling it.
- There has been an increasing trend in the DOH from 118.69 days as of May 31, 2020, to 152.62 days as of February 28, 2024.
- However, there was a slight decrease in DOH to 106.83 days as of February 28, 2025, suggesting potential improvements in inventory management efficiency in the most recent period.

2. Days of Sales Outstanding (DSO):
- The data does not contain any information on the days of sales outstanding, which indicates the average number of days it takes for the company to collect revenue after making a sale. Therefore, evaluation of this metric is not possible with the provided data.

3. Number of Days of Payables:
- Similar to DSO, information regarding the number of days of payables is not available in the data provided. This metric typically measures how long a company takes to pay its suppliers.

In conclusion, based on the available data, Constellation Brands Inc Class A has shown fluctuations in its inventory management efficiency as reflected in the changes in the days of inventory on hand over the periods analyzed. Additional information on days of sales outstanding and number of days of payables would provide a more comprehensive overview of the company's efficiency in managing its working capital.

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See also:

Constellation Brands Inc Class A Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

The fixed asset turnover ratio of Constellation Brands Inc Class A has shown some fluctuations over the years, ranging from a low of 1.27 in November 2023 to a high of 1.61 in May 2021. This ratio measures how effectively the company is generating sales revenue from its investments in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio generally indicates that the company is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has been relatively stable over the same period, with a slight increase from 0.31 in May 2020 to 0.47 in February 2025. This ratio reflects how efficiently the company is using its total assets to generate sales. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.

Overall, based on the analysis of the fixed asset turnover and total asset turnover ratios, Constellation Brands Inc Class A has exhibited varying levels of efficiency in generating sales revenue from its fixed and total assets over the years. It is essential for the company to closely monitor these ratios to ensure optimal utilization of its assets and sustainable growth in the long term.

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See also:

Constellation Brands Inc Class A Long-term (Investment) Activity Ratios (Quarterly Data)