Constellation Brands Inc Class A (STZ)

Receivables turnover

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Revenue	US$ in thousands	20,641,100	19,569,700	18,413,100	17,933,500	17,359,400
Receivables	US$ in thousands	832,800	901,600	899,000	785,300	864,800
Receivables turnover		24.79	21.71	20.48	22.84	20.07

February 29, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $20,641,100K ÷ $832,800K
= 24.79

The receivables turnover ratio for Constellation Brands Inc Class A has shown an increasing trend over the past five fiscal years. The ratio has improved from 20.07 in fiscal year 2020 to 24.79 in fiscal year 2024, indicating that the company is collecting its accounts receivable more frequently within the year.

This suggests that Constellation Brands Inc Class A has been more efficient in collecting payments from its customers in recent years. A higher receivables turnover ratio is generally a positive indicator, as it signifies that the company is able to convert its accounts receivable into cash quickly and efficiently.

The increasing trend in receivables turnover ratio reflects the company's ability to manage its credit policies effectively and maintain strong relationships with its customers. Overall, the improving receivables turnover ratio demonstrates Constellation Brands Inc Class A's focus on managing its accounts receivable efficiently, which is crucial for maintaining healthy cash flows and financial stability.