Constellation Brands Inc Class A (STZ)
Solvency ratios
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 2.64 | 2.93 | 2.20 | 1.99 |
Constellation Brands Inc Class A has consistently maintained a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 from February 28, 2021 to February 29, 2024. This indicates that the company has not relied heavily on debt to finance its operations and has managed to maintain a favorable balance between debt and assets, capital, and equity.
The Financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown a slight increase over the years, from 1.99 on February 28, 2021 to 2.64 on February 29, 2024. While this increase indicates a higher level of leverage, the ratio still remains at a reasonable level, suggesting that Constellation Brands Inc Class A has been able to effectively manage its debt levels without compromising its financial stability.
Overall, based on the solvency ratios analyzed, Constellation Brands Inc Class A appears to have a solid financial position with low debt levels and a prudent approach to capital structure management.
Coverage ratios
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | -1.20 | 6.10 | 1.96 | 1.86 | 7.59 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Constellation Brands Inc Class A interest coverage has shown fluctuations over the past years. As of February 28, 2021, the interest coverage ratio was 7.59, indicating the company could cover its interest expenses over seven times with its operating profits. However, by February 28, 2022, the ratio dropped to 1.86, suggesting a decreased ability to cover interest payments with operating income.
In the following years, there was a slight improvement in the interest coverage ratio, with ratios of 1.96 on February 28, 2023, and 6.10 on February 29, 2024. These improvements indicate a better ability to meet interest obligations.
However, the interest coverage ratio took a significant downturn to -1.20 as of February 28, 2025, resulting in a negative coverage. This negative ratio implies that Constellation Brands Inc Class A did not generate sufficient operating income to cover its interest expenses, raising concerns about the company's financial health and ability to service its debt.
Overall, the fluctuating trend in the interest coverage ratio of Constellation Brands Inc Class A indicates varying levels of ability to meet interest obligations, with the most recent negative ratio highlighting potential financial strain and the need for careful monitoring and management of debt levels.