Constellation Brands Inc Class A (STZ)
Profitability ratios
Return on sales
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.06% | 50.37% | 50.45% | 53.37% | 51.84% |
| Operating profit margin | 3.48% | 31.82% | 30.08% | 26.43% | 32.40% |
| Pretax margin | -0.81% | 22.30% | 4.06% | 3.52% | 29.52% |
| Net profit margin | -0.80% | 17.34% | -0.41% | 0.01% | 23.19% |
Based on the provided data for Constellation Brands Inc Class A, the trend in profitability ratios shows fluctuations over the years:
1. Gross Profit Margin:
- The gross profit margin has shown a slight increase from 51.84% in February 2021 to 52.06% in February 2025.
- This indicates that the company has been able to maintain a healthy level of profitability after some fluctuations.
2. Operating Profit Margin:
- The operating profit margin decreased significantly from 32.40% in February 2021 to 3.48% in February 2025.
- This sharp decline may imply challenges in controlling operating expenses or generating lower operating income.
3. Pretax Margin:
- The pretax margin fluctuated significantly over the years, ranging from 29.52% in February 2021 to -0.81% in February 2025.
- The negative pretax margin in 2025 suggests a situation where the company's expenses exceed its pre-tax earnings.
4. Net Profit Margin:
- The net profit margin also experienced significant fluctuations, ranging from 23.19% in February 2021 to -0.80% in February 2025.
- The negative net profit margin in 2025 indicates that the company may be facing challenges in generating profits after accounting for all expenses and taxes.
In summary, while the gross profit margin has shown some improvement, the operating, pretax, and net profit margins have displayed fluctuations and declines over the years, indicating potential challenges in managing expenses and maintaining profitability. Further analysis would be required to identify the underlying factors contributing to these fluctuations.
Return on investment
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | 12.34% | 11.53% | 9.02% | 10.30% |
| Return on assets (ROA) | — | 6.72% | -0.16% | 0.00% | 7.37% |
| Return on total capital | — | 27.26% | 9.29% | 5.65% | 21.51% |
| Return on equity (ROE) | — | 17.73% | -0.46% | 0.01% | 14.69% |
Constellation Brands Inc Class A's profitability ratios show fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- In February 2021, the Operating ROA was at 10.30%, indicating that the company generated 10.30 cents of operating profit for each dollar of assets.
- The Operating ROA decreased to 9.02% in February 2022 before rebounding to 11.53% in February 2023 and further increasing to 12.34% in February 2024.
- No data provided for February 2025, which signifies missing information.
2. Return on Assets (ROA):
- The ROA was 7.37% in February 2021, indicating the company generated 7.37 cents of profit for each dollar of assets.
- However, the ROA dropped to 0.00% in February 2022 and turned negative to -0.16% in February 2023, reflecting potential operational challenges.
- The ROA recovered to 6.72% in February 2024, but no data available for February 2025.
3. Return on Total Capital:
- In February 2021, the Return on Total Capital was strong at 21.51%, showing that the company efficiently utilized both debt and equity to generate returns.
- The Return on Total Capital reduced to 5.65% in February 2022, then increased to 9.29% in February 2023, and significantly rose to 27.26% in February 2024.
- No data provided for February 2025.
4. Return on Equity (ROE):
- The ROE started solid at 14.69% in February 2021, signifying that shareholders earned 14.69 cents for every dollar invested in the company.
- However, the ROE dropped to a minimal 0.01% in February 2022 and turned negative to -0.46% in February 2023, suggesting potential issues with profitability and shareholder value.
- The ROE improved to 17.73% in February 2024, with no data available for February 2025.
In conclusion, Constellation Brands Inc Class A's profitability ratios have shown variability over the years, with some improvement in certain metrics while others facing challenges. It is crucial for investors to monitor these ratios continuously to assess the company's financial performance.