Constellation Brands Inc Class A (STZ)

Return on equity (ROE)

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	1,727,400	1,558,000	1,516,600	-324,600	-71,000	101,400	104,500	1,257,200	-40,400	-52,900	757,200	1,267,800	1,998,000	2,013,500	1,093,000	55,700	-11,800	829,300	772,000	2,446,700
Total stockholders’ equity	US$ in thousands	9,743,100	9,471,000	9,390,800	8,585,000	8,413,600	8,389,500	9,389,000	11,231,400	11,731,900	11,238,300	11,192,700	12,261,600	13,598,900	13,312,100	11,688,000	11,066,000	12,131,800	11,709,400	11,377,500	12,174,600
ROE		17.73%	16.45%	16.15%	-3.78%	-0.84%	1.21%	1.11%	11.19%	-0.34%	-0.47%	6.77%	10.34%	14.69%	15.13%	9.35%	0.50%	-0.10%	7.08%	6.79%	20.10%

February 29, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,727,400K ÷ $9,743,100K
= 17.73%

Constellation Brands Inc Class A has shown varying levels of return on equity (ROE) over the past several quarters. In general, ROE reflects the company's ability to generate profits from shareholders' equity.

The ROE for Constellation Brands Inc Class A ranged from a low of -3.78% in May 2023 to a high of 17.73% in February 2024. The negative ROE in May 2023 indicates that the company had a net loss for that period, resulting in a negative return for shareholders.

The upward trend in ROE from November 2022 to February 2024 suggests an improvement in the company's profitability relative to its equity base. This could be attributable to various factors such as increased sales, cost management, or efficient use of assets.

However, the negative or low ROE figures in some quarters, like May 2023 and February 2020, indicate periods of lower profitability or losses compared to the equity invested by shareholders. It is important for investors to assess the reasons behind these fluctuations in ROE to understand the company's performance and profitability sustainability.

Overall, the ROE of Constellation Brands Inc Class A has shown volatility over the past few quarters, reflecting the company's financial performance and its ability to generate returns for shareholders. Investors should monitor this metric along with other financial indicators to gain a comprehensive view of the company's financial health and prospects.