Constellation Brands Inc Class A (STZ)

Receivables 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
Revenue (ttm)	US$ in thousands	18,355,600	18,214,200	18,152,200	17,720,700	17,472,300	17,577,000	17,349,600	16,786,900	16,080,300	15,930,800	16,205,800	16,024,100	15,822,800	15,772,700	14,758,900	14,798,600	15,004,300	14,898,600	14,862,300	14,784,200
Receivables	US$ in thousands	832,800	897,300	933,200	933,100	901,600	921,000	978,900	879,900	899,000	917,800	972,800	922,800	785,300	915,400	926,300	700,500	864,800	808,300	953,700	788,300
Receivables turnover		22.04	20.30	19.45	18.99	19.38	19.08	17.72	19.08	17.89	17.36	16.66	17.36	20.15	17.23	15.93	21.13	17.35	18.43	15.58	18.75

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $18,355,600K ÷ $832,800K
= 22.04

The receivables turnover for Constellation Brands Inc Class A has been relatively stable over the past few periods, ranging from a low of 15.58 times to a high of 22.04 times. This indicates that the company is efficiently managing its accounts receivable by collecting them multiple times within a given period.

The upward trend in receivables turnover from August 2020 to February 2021 suggests that the company improved its collection efforts during that time. However, the metric dipped slightly in the following periods before stabilizing around the 19 to 20 times range.

Overall, a high receivables turnover ratio signifies that Constellation Brands Inc Class A is effective in converting its credit sales into cash quickly, which is a positive indicator of its liquidity and operational efficiency.