Constellation Brands Inc Class A (STZ)
Return on total capital
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,169,700 | 2,842,900 | 2,331,700 | 2,791,100 | 2,154,500 |
| Long-term debt | US$ in thousands | 10,681,100 | 11,286,500 | 9,488,200 | 10,413,100 | 11,210,800 |
| Total stockholders’ equity | US$ in thousands | 9,743,100 | 8,413,600 | 11,731,900 | 13,598,900 | 12,131,800 |
| Return on total capital | 15.52% | 14.43% | 10.99% | 11.62% | 9.23% |
February 29, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,169,700K ÷ ($10,681,100K + $9,743,100K)
= 15.52%
Constellation Brands Inc Class A has shown a consistent improvement in its return on total capital over the past five years, with the ratio increasing from 9.23% in February 2020 to 15.52% in February 2024. This indicates that the company has been effectively utilizing its total capital to generate profit for its shareholders. The upward trend suggests that Constellation Brands has been making efficient investments and managing its capital resources well. Overall, the increasing return on total capital reflects positively on the company's financial performance and strategic decision-making.
Peer comparison
Feb 29, 2024