Constellation Brands Inc Class A (STZ)

Working capital 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
Total current assets	US$ in thousands	3,729,500	3,551,400	3,434,300	3,652,600	3,496,100	3,525,900	3,530,200	3,302,200	3,329,700	3,376,600	2,943,700	3,313,100	3,044,500	3,447,100	3,537,200	3,396,200	3,484,100	3,469,900	3,537,500	3,580,900
Total current liabilities	US$ in thousands	3,141,700	3,379,900	2,857,500	3,190,500	2,968,300	2,725,000	2,511,900	2,365,800	2,698,800	2,248,600	2,187,100	2,062,800	1,269,100	2,041,400	1,909,900	1,752,400	2,311,800	2,460,200	2,195,900	2,939,300
Working capital turnover		31.23	106.21	31.47	38.35	33.10	21.95	17.04	17.93	25.49	14.12	21.42	12.82	8.91	11.22	9.07	9.00	12.80	14.76	11.08	23.04

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,355,600K ÷ ($3,729,500K – $3,141,700K)
= 31.23

The working capital turnover ratio for Constellation Brands Inc Class A has exhibited fluctuations over the periods analyzed. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.

In the most recent period (February 29, 2024), the working capital turnover ratio was 31.23, which indicates that the company generated $31.23 in sales for every dollar of working capital invested. This represents a significant improvement compared to the ratio in the previous period (November 30, 2023) which was 106.21, suggesting a sudden spike in efficiency or possibly an anomaly.

Looking at the trend over the past several periods, there seem to be fluctuations in the ratio. The ratios range from a low of 8.91 (February 28, 2021) to a high of 106.21 (November 30, 2023), which indicates varying levels of efficiency in utilizing working capital across different times.

Overall, it is important for Constellation Brands Inc Class A to closely monitor its working capital turnover ratio to ensure optimal utilization of working capital in generating sales revenue consistently. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and efficiency.