Constellation Brands Inc Class A (STZ)

Working capital turnover

		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	Feb 29, 2020
Revenue (ttm)	US$ in thousands	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	8,343,500
Total current assets	US$ in thousands	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	3,484,100
Total current liabilities	US$ in thousands	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	2,311,800
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	7.12

November 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,183,500K ÷ ($3,629,500K – $3,289,000K)
= 29.91

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.

Analyzing the working capital turnover of Constellation Brands Inc Class A over the provided periods:

- The ratio was 7.12 as of February 29, 2020, showing that for every $1 of working capital invested, the company generated $7.12 in sales.
- The ratio decreased to 4.99 by May 31, 2020, indicating a slight decrease in efficiency in utilizing working capital.
- The ratio remained at 4.99 by August 31, 2020.
- There was an improvement in efficiency with the ratio increasing to 6.09 by November 30, 2020.
- The ratio decreased to 4.85 by February 28, 2021, but then increased to 6.94 by May 31, 2021, and significantly rose to 11.62 by August 31, 2021, reflecting a substantial improvement in working capital management.
- The ratio remained high at 7.69 by November 30, 2021, and further increased to 13.98 by February 28, 2022.
- The efficiency slightly declined to 9.78 by May 31, 2022, and then to 9.27 by August 31, 2022.
- There was an increase in efficiency again with the ratio rising to 11.93 by November 30, 2022 and further to 17.91 by February 28, 2023, indicating strong performance in utilizing working capital.
- The ratio continued to increase to 20.78 by May 31, 2023, but then decreased to 16.97 by August 31, 2023.
- Notably, there was a significant surge in efficiency with the ratio soaring to 57.26 by November 30, 2023.
- The ratio decreased to 16.95 by February 29, 2024, then to 14.31 by May 31, 2024, and further to 13.90 by August 31, 2024.
- Finally, there was an increase in efficiency as the ratio rose to 29.91 by November 30, 2024.

Overall, the working capital turnover ratio for Constellation Brands Inc Class A has shown fluctuations over the analyzed periods, indicating varying levels of efficiency in utilizing working capital to generate sales revenue.