Constellation Brands Inc Class A (STZ)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,169,700 | 3,007,000 | 2,956,800 | 2,791,200 | 2,842,900 | 3,053,700 | 3,146,900 | 3,073,000 | 2,331,700 | 2,213,500 | 2,156,700 | 2,256,200 | 2,791,100 | 2,776,900 | 1,803,000 | 353,400 | -568,500 | 529,300 | 1,135,700 | 3,201,300 |
| Long-term debt | US$ in thousands | 10,681,100 | 10,282,300 | 10,680,800 | 10,979,800 | 11,286,500 | 11,287,100 | 10,278,700 | 10,278,200 | 9,488,200 | 10,083,800 | 10,081,700 | 9,914,800 | 10,413,100 | 10,416,100 | 11,066,800 | 11,639,300 | 11,210,800 | 11,339,700 | 12,159,800 | 11,745,800 |
| 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 |
| Return on total capital | 15.52% | 15.22% | 14.73% | 14.27% | 14.43% | 15.52% | 16.00% | 14.29% | 10.99% | 10.38% | 10.14% | 10.17% | 11.62% | 11.70% | 7.92% | 1.56% | -2.44% | 2.30% | 4.83% | 13.38% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,169,700K ÷ ($10,681,100K + $9,743,100K)
= 15.52%
Constellation Brands Inc Class A's return on total capital has shown a relatively consistent trend over the past few quarters. The return on total capital ranged from a low of -2.44% in May 2020 to a high of 16.00% in November 2022. In the most recent period, February 2024, the return on total capital was 15.52%, demonstrating the company's ability to efficiently utilize its capital to generate profits.
Overall, Constellation Brands Inc Class A's return on total capital has generally been above 10% in the past few years, indicating a solid performance in generating returns from its total capital base. The company's ability to maintain a moderate to high return on total capital suggests effective capital allocation and operational efficiency.
It is important for investors and analysts to monitor this ratio over time to assess the company's ability to generate returns on its total capital and evaluate its overall financial performance and efficiency.
Peer comparison
Feb 29, 2024