Constellation Brands Inc Class A (STZ)
Solvency ratios
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.42 | 0.46 | 0.37 | 0.38 | 0.41 |
| Debt-to-capital ratio | 0.52 | 0.57 | 0.45 | 0.43 | 0.48 |
| Debt-to-equity ratio | 1.10 | 1.34 | 0.81 | 0.77 | 0.92 |
| Financial leverage ratio | 2.64 | 2.93 | 2.20 | 1.99 | 2.25 |
Constellation Brands Inc Class A's solvency ratios indicate its ability to meet its financial obligations and the extent of its leverage. The debt-to-assets ratio has shown a slight fluctuation over the past five years, ranging from 0.37 to 0.46, with a current value of 0.42 as of Feb 29, 2024. This ratio suggests that approximately 42% of the company's assets are financed by debt.
The debt-to-capital ratio also displays variability, with values ranging from 0.43 to 0.57 during the same period. As of Feb 29, 2024, the ratio stands at 0.52, indicating that debt constitutes about 52% of the company's total capital structure.
The debt-to-equity ratio reflects how much of the company is financed through debt relative to equity. Over the past five years, this ratio has fluctuated between 0.77 and 1.34, with the latest reading at 1.10 as of Feb 29, 2024. This suggests that Constellation Brands relies more on debt financing compared to equity, with debt accounting for approximately 110% of its equity.
The financial leverage ratio, which measures the company's total debt relative to its equity, has also shown variability, ranging from 1.99 to 2.93 over the five-year period. As of Feb 29, 2024, the ratio is at 2.64, indicating that the company has a higher level of financial leverage, with debt accounting for approximately 264% of its equity.
Overall, Constellation Brands Inc Class A's solvency ratios demonstrate fluctuations in its leverage and debt financing mix over the past five years. A higher reliance on debt financing, as indicated by these ratios, may increase financial risk and interest payment obligations for the company.
Coverage ratios
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2,264.07 | 2,584.45 | 4,663.40 | 87.22 | 56.85 |
Constellation Brands Inc Class A has demonstrated fluctuating interest coverage ratios over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
In the most recent fiscal year ending on February 29, 2024, Constellation Brands Inc Class A reported an interest coverage ratio of 2,264.07, indicating the company's strong capacity to cover its interest expenses. This was a decrease from the previous year's ratio of 2,584.45, but still at a healthy level.
Looking back at the trend over the five-year period, there were significant fluctuations in the interest coverage ratio. The peak was seen in the fiscal year ending on February 28, 2022, with a high ratio of 4,663.40, signaling a robust ability to service its debt obligations.
In contrast, the company faced some challenges in managing its interest payments in the fiscal years ending on February 28, 2021 and February 29, 2020, where the interest coverage ratios were lower at 87.22 and 56.85 respectively. These lower ratios may indicate potential financial strain and the need for closer attention to debt management.
Overall, while Constellation Brands Inc Class A has displayed varying levels of interest coverage over the years, the most recent data indicates a healthy ability to cover interest obligations. However, it is essential for the company to monitor and manage its debt levels effectively to maintain financial stability and sustainability in the long term.