Constellation Brands Inc Class A (STZ)

Debt-to-assets ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Long-term debt	US$ in thousands	10,681,100	11,286,500	9,488,200	10,413,100	11,210,800
Total assets	US$ in thousands	25,691,700	24,662,300	25,855,800	27,104,800	27,323,200
Debt-to-assets ratio		0.42	0.46	0.37	0.38	0.41

February 29, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $10,681,100K ÷ $25,691,700K
= 0.42

The debt-to-assets ratio of Constellation Brands Inc Class A has fluctuated over the past five years, ranging from 0.37 to 0.46. This ratio indicates the proportion of the company's assets financed by debt. A higher ratio suggests higher financial leverage and potential risk, while a lower ratio indicates a stronger financial position with more assets funded by equity.

In the most recent fiscal year, as of February 29, 2024, the debt-to-assets ratio improved to 0.42 from 0.46 in the previous year. This indicates that the company reduced its level of debt relative to its total assets, which could reflect a more conservative capital structure and reduced financial risk.

Over the five-year period, the debt-to-assets ratio has generally remained within a moderate range, suggesting that Constellation Brands Inc Class A has maintained a reasonable balance between debt and assets in its capital structure. It is important to consider industry benchmarks and the company's specific circumstances when assessing the appropriateness of this ratio.