Constellation Brands Inc Class A (STZ)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-81,400	686,300	579,500	2,468,500	1,727,400	1,558,000	1,516,600	-314,100	-60,500	111,900	115,000	1,257,200	-40,400	-52,900	757,200	1,267,800	1,998,000	2,013,500	1,093,000	55,700
Total stockholders’ equity	US$ in thousands	7,134,800	7,817,800	7,870,800	10,251,800	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
ROE		-1.14%	8.78%	7.36%	24.08%	17.73%	16.45%	16.15%	-3.66%	-0.72%	1.33%	1.22%	11.19%	-0.34%	-0.47%	6.77%	10.34%	14.69%	15.13%	9.35%	0.50%

February 28, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-81,400K ÷ $7,134,800K
= -1.14%

The return on equity (ROE) for Constellation Brands Inc Class A has experienced fluctuations over the analyzed period.

ROE was relatively low at 0.50% as of May 31, 2020, but then showed a significant improvement reaching 15.13% by November 30, 2020. The trend continued positively with ROE standing at 14.69% on February 28, 2021, and then slightly decreasing to 10.34% by May 31, 2021.

However, there was a downward trend from thereon, with ROE declining to -0.47% on November 30, 2021, and further dropping to -3.66% by May 31, 2023.

Subsequently, there was a noteworthy recovery as ROE rebounded to 24.08% on May 31, 2024, followed by a slight decrease to 7.36% on August 31, 2024, and a further increase to 8.78% by November 30, 2024.

The ROE then faced a decline to -1.14% on February 28, 2025. Overall, the fluctuations in ROE indicate varying levels of profitability relative to the shareholders' equity during the period under review. It is important for investors and stakeholders to assess the reasons behind these fluctuations to determine the company's financial performance and management efficiency.