Constellation Brands Inc Class A (STZ)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	106.83	155.87	152.96	155.66	152.62	148.67	135.40	147.39	147.97	142.46	133.85	140.13	139.60	135.13	116.98	123.21	113.58	121.31	121.68	118.69
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	106.83	155.87	152.96	155.66	152.62	148.67	135.40	147.39	147.97	142.46	133.85	140.13	139.60	135.13	116.98	123.21	113.58	121.31	121.68	118.69

February 28, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 106.83 + — – —
= 106.83

The cash conversion cycle of Constellation Brands Inc Class A provides insight into the efficiency of its working capital management and cash flow dynamics.

Analyzing the data provided, the trend of the cash conversion cycle over the period from May 31, 2020, to February 28, 2025, shows fluctuations in the number of days it takes for Constellation Brands Inc to convert its investments in inventory into cash receipts from its sales.

The cash conversion cycle ranged from a low of 106.83 days on February 28, 2025, to a high of 155.87 days on November 30, 2024. This indicates that there were times when Constellation Brands was able to efficiently manage its working capital and convert its inventory into cash quickly, and conversely, there were periods where this process took longer, potentially impacting liquidity and cash flow.

Overall, fluctuations in the cash conversion cycle reflect changes in inventory management, accounts receivable collection, and accounts payable payment practices of Constellation Brands Inc. Monitoring and optimizing the cash conversion cycle is crucial for the company to effectively manage its cash flow, working capital, and overall financial health.