Constellation Brands Inc Class A (STZ)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	25,691,700	25,057,400	24,930,000	24,759,200	24,662,300	24,463,000	24,280,900	25,841,100	25,855,800	25,527,300	25,340,300	26,192,400	27,104,800	27,630,600	26,462,500	26,149,800	27,323,200	27,093,700	27,555,100	28,951,100
Debt-to-assets ratio		0.42	0.41	0.43	0.44	0.46	0.46	0.42	0.40	0.37	0.40	0.40	0.38	0.38	0.38	0.42	0.45	0.41	0.42	0.44	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 shown some fluctuation over the past few years, ranging from 0.37 to 0.46. This ratio measures the proportion of the company's total debt to its total assets. A lower ratio indicates that the company is relying less on debt financing and has a higher proportion of assets financed by equity, which is generally considered favorable as it implies lower financial risk.

From the data provided, we can see that the debt-to-assets ratio has generally been relatively stable, with the company maintaining a conservative level of debt compared to its total assets. However, the slight fluctuations over time may indicate changes in the company's capital structure or borrowing practices.

Overall, the debt-to-assets ratio of Constellation Brands Inc Class A suggests a reasonable level of debt relative to its assets, reflecting a cautious approach to financial leverage and likely indicating a solid financial position. It is important to continue monitoring this ratio over time to assess any significant changes that may affect the company's financial risk profile.