Constellation Brands Inc Class A (STZ)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,743,100	8,413,600	11,731,900	13,598,900	12,131,800
Debt-to-capital ratio		0.52	0.57	0.45	0.43	0.48

February 29, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,681,100K ÷ ($10,681,100K + $9,743,100K)
= 0.52

Constellation Brands Inc Class A's debt-to-capital ratio has experienced some fluctuations over the past five years. The ratio decreased from 0.48 in 2020 to 0.43 in 2021, indicating a more conservative capital structure. However, in the following years, the ratio increased to 0.45 in 2022, 0.57 in 2023, and 0.52 in 2024, suggesting a higher level of debt relative to total capital.

The rising trend in the debt-to-capital ratio may indicate increased reliance on debt financing to support the company's operations or expansion initiatives. This could potentially expose the company to higher financial risk, especially if interest rates were to increase or if there were any unexpected challenges in generating sufficient cash flows to service the debt.

It is crucial for investors and stakeholders to closely monitor Constellation Brands Inc Class A's debt levels and assess its ability to manage and repay its debts in a timely manner to maintain financial stability and sustainable growth.