Constellation Brands Inc Class A (STZ)

Working capital turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Revenue (ttm)	US$ in thousands	10,208,600	10,183,500	10,190,600	10,108,500	9,961,700	9,820,400	9,786,000	9,604,300	9,452,600	9,557,300	9,441,400	9,157,400	8,820,700	8,671,200	8,788,700	8,678,000	8,614,900	8,564,800	8,126,100	8,209,700
Total current assets	US$ in thousands	3,716,400	3,629,500	3,646,800	3,828,400	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
Total current liabilities	US$ in thousands	4,035,200	3,289,000	2,913,800	3,122,200	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
Working capital turnover		—	29.91	13.90	14.31	16.95	57.26	16.97	20.78	17.91	11.93	9.27	9.78	13.98	7.69	11.62	6.94	4.85	6.09	4.99	4.99

February 28, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,208,600K ÷ ($3,716,400K – $4,035,200K)
= —

The working capital turnover ratio for Constellation Brands Inc Class A has shown significant fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital.

From May 31, 2020, to November 30, 2021, the working capital turnover ratio ranged between 4.85 and 11.62, indicating relatively stable efficiency in utilizing working capital during this period. However, there was a notable increase in efficiency from November 30, 2021, to May 31, 2023, where the ratio surged from 7.69 to 20.78, reflecting a significant improvement in working capital management and revenue generation.

Subsequently, the ratio dipped to 13.90 by August 31, 2024, showcasing a decrease in efficiency compared to the peak in May 31, 2023. The working capital turnover ratio surged to 29.91 by November 30, 2024, signifying a sudden increase in efficiency in utilizing working capital to drive sales revenue.

Overall, the working capital turnover ratio for Constellation Brands Inc Class A has shown volatility but generally depicts an upward trend, indicating improved efficiency in utilizing working capital to generate revenue, with the most recent available data showing a ratio of 13.90 as of August 31, 2024.