Constellation Brands Inc Class A (STZ)

Working capital 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
Total current assets	US$ in thousands	3,729,500	3,496,100	3,329,700	3,044,500	3,484,100
Total current liabilities	US$ in thousands	3,141,700	2,968,300	2,698,800	1,269,100	2,311,800
Working capital turnover		35.12	37.08	29.19	10.10	14.81

February 29, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,641,100K ÷ ($3,729,500K – $3,141,700K)
= 35.12

The working capital turnover of Constellation Brands Inc Class A has been fluctuating over the past five years. In the latest fiscal year ended February 29, 2024, the company's working capital turnover ratio was 35.12, indicating that the company generated $35.12 in net sales for every dollar of working capital invested.

Compared to the previous year, where the ratio was 37.08, there was a slight decrease in efficiency in utilizing working capital to generate sales. However, the ratio remained relatively high, suggesting that the company effectively managed its working capital to support its operations.

In the earlier years, the working capital turnover ratios were 29.19 (Feb 28, 2022), 10.10 (Feb 28, 2021), and 14.81 (Feb 29, 2020). These fluctuations indicate varying levels of efficiency in utilizing working capital in those respective years.

Overall, a higher working capital turnover ratio signifies better efficiency in utilizing working capital to generate sales, indicating effective management of the company's assets. Constellation Brands Inc Class A's working capital turnover ratio has shown variability over the years, but the recent ratio of 35.12 highlights a strong ability to convert working capital into revenue.