Constellation Brands Inc Class A (STZ)

Return on assets (ROA)

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Net income	US$ in thousands	1,727,400	-71,000	-40,400	1,998,000	-11,800
Total assets	US$ in thousands	25,691,700	24,662,300	25,855,800	27,104,800	27,323,200
ROA		6.72%	-0.29%	-0.16%	7.37%	-0.04%

February 29, 2024 calculation

ROA = Net income ÷ Total assets
= $1,727,400K ÷ $25,691,700K
= 6.72%

Constellation Brands Inc Class A's return on assets (ROA) has displayed fluctuating trends over the past five years. In the most recent fiscal year, ending on February 29, 2024, the ROA stood at 6.72%, indicating that the company generated a profit of 6.72 cents for every dollar of assets it holds. This represents a significant improvement compared to the negative ROA figures reported in the previous two fiscal years (2023 and 2022), where the company experienced losses relative to its asset base.

The highest ROA over the period under review was recorded in the fiscal year ending on February 28, 2021, at 7.37%, signifying efficient asset utilization and profitability during that period. In contrast, Constellation Brands Inc Class A reported a negative ROA in the fiscal years ending February 28, 2023, and February 29, 2020, indicating challenges in generating profits relative to its asset base during those periods.

Overall, Constellation Brands Inc Class A's ROA performance has been inconsistent, with fluctuations in profitability relative to its asset base. It is crucial for the company to sustain and potentially improve its ROA over time to demonstrate efficient asset management and generate favorable returns for its stakeholders. Further analysis of the company's financial and operational strategies may provide insights into the factors influencing its ROA performance and guide future decision-making.