Constellation Brands Inc Class A (STZ)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,743,100	9,471,000	9,390,800	8,585,000	8,413,600	8,389,500	9,389,000	11,231,400	11,731,900	11,238,300	11,192,700	12,261,600	13,598,900	13,312,100	11,688,000	11,066,000	12,131,800	11,709,400	11,377,500	12,174,600
Debt-to-capital ratio		0.52	0.52	0.53	0.56	0.57	0.57	0.52	0.48	0.45	0.47	0.47	0.45	0.43	0.44	0.49	0.51	0.48	0.49	0.52	0.49

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

The debt-to-capital ratio of Constellation Brands Inc Class A has fluctuated over the past 20 quarters, ranging from 0.43 to 0.57. The ratio indicates the proportion of the company's capital that is financed through debt. A higher debt-to-capital ratio suggests higher financial leverage and a greater reliance on debt financing.

Analyzing the trend, we can observe that the ratio increased from 0.43 in February 2021 to 0.57 in May 2023, indicating an increase in debt relative to total capital during this period. However, the ratio slightly decreased to 0.52 by February 2024.

Despite some fluctuations, the debt-to-capital ratio has generally been within a range of 0.45 to 0.57 over the past few years, indicating that Constellation Brands Inc Class A has maintained a moderate level of debt relative to its total capital structure.

It is important for investors and creditors to monitor this ratio as it provides insights into the company's financial health, risk level, and debt management strategies.