Constellation Brands Inc Class A (STZ)

Debt-to-equity 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-equity ratio		1.10	1.09	1.14	1.28	1.34	1.35	1.09	0.92	0.81	0.90	0.90	0.81	0.77	0.78	0.95	1.05	0.92	0.97	1.07	0.96

February 29, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,681,100K ÷ $9,743,100K
= 1.10

Constellation Brands Inc Class A has shown some fluctuations in its debt-to-equity ratio over the past several quarters. The ratio has ranged from 0.77 to 1.35 during the period covered by the data.

From February 2020 to May 2021, the debt-to-equity ratio generally decreased, indicating a lower reliance on debt financing relative to equity. This suggests a healthier financial structure and may reflect management's efforts to reduce debt levels.

However, from August 2021 to May 2023, the ratio increased, reaching levels above 1. This indicates a higher proportion of debt in the company's capital structure compared to equity. An increasing debt-to-equity ratio could imply higher financial risk and a potential strain on the company's ability to meet its debt obligations.

The most recent data point, as of February 2024, shows a debt-to-equity ratio of 1.10. This indicates that the company has slightly more debt than equity in its capital structure, which could be a cause for concern if the trend continues.

Overall, while fluctuations in the debt-to-equity ratio are normal in a business, it is important for investors and analysts to monitor the trend over time to assess the company's financial health and risk profile accurately.