Constellation Brands Inc Class A (STZ)
Profitability ratios
Return on sales
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.31% | 24.37% | 25.56% | 24.90% | 23.92% |
| Operating profit margin | 15.36% | 14.53% | 12.66% | 15.56% | 12.41% |
| Pretax margin | 10.58% | 1.79% | 1.46% | 13.99% | -5.64% |
| Net profit margin | 8.37% | -0.36% | -0.22% | 11.14% | -0.07% |
Constellation Brands Inc Class A has shown consistency in its gross profit margin over the past five years, ranging from 23.92% to 25.56%. This indicates that the company has been able to effectively manage its cost of goods sold relative to its revenue.
In terms of operating profit margin, we observe fluctuations with a general upward trend from 12.41% in Feb 2020 to 15.36% in Feb 2024. This reflects the company's ability to control its operating expenses and improve operational efficiency over time.
The pretax margin of Constellation Brands Inc Class A has varied significantly, with negative values in Feb 2020 and Feb 2021, and a notable spike to 13.99% in Feb 2021. This indicates that while the company has faced challenges in generating consistent pre-tax income in some years, it has been able to achieve higher levels of profitability in others.
Looking at the net profit margin, we can see a similar pattern of fluctuation, with negative values in Feb 2020 and Feb 2023, and a peak of 11.14% in Feb 2021. The positive trend in the net profit margin from -0.07% in Feb 2020 to 8.37% in Feb 2024 demonstrates Constellation Brands Inc Class A's ability to effectively manage its bottom line and improve profitability over time.
Overall, Constellation Brands Inc Class A has shown resilience in maintaining and enhancing its profitability ratios, reflecting sound financial management and strategic decision-making.
Return on investment
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.34% | 11.53% | 9.02% | 10.30% | 7.89% |
| Return on assets (ROA) | 6.72% | -0.29% | -0.16% | 7.37% | -0.04% |
| Return on total capital | 15.52% | 14.43% | 10.99% | 11.62% | 9.23% |
| Return on equity (ROE) | 17.73% | -0.84% | -0.34% | 14.69% | -0.10% |
Constellation Brands Inc Class A has shown consistent improvement in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has been on an upward trend, increasing from 7.89% in Feb 2020 to 12.34% in Feb 2024. This indicates that the company is generating more operating income per dollar of assets over time.
2. Return on assets (ROA) has also improved significantly, reaching 6.72% in Feb 2024 compared to a negative figure in Feb 2021. This suggests that the company has been more effective in generating profits from its assets.
3. Return on total capital has shown a steady increase, from 9.23% in Feb 2020 to 15.52% in Feb 2024. This indicates that the company is generating higher returns for its total capital employed.
4. Return on equity (ROE) has reflected a similar positive trend, increasing from a negative figure in Feb 2021 to 17.73% in Feb 2024. This implies that the company is generating higher profits for its shareholders' equity.
Overall, the improving profitability ratios of Constellation Brands Inc Class A over the past five years indicate efficient utilization of assets and capital, resulting in enhanced returns for both investors and the company.