Constellation Brands Inc Class A (STZ)

Financial leverage ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Total assets	US$ in thousands	25,691,700	24,662,300	25,855,800	27,104,800	27,323,200
Total stockholders’ equity	US$ in thousands	9,743,100	8,413,600	11,731,900	13,598,900	12,131,800
Financial leverage ratio		2.64	2.93	2.20	1.99	2.25

February 29, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,691,700K ÷ $9,743,100K
= 2.64

The financial leverage ratio of Constellation Brands Inc Class A has varied over the past five fiscal years. The ratio was highest on February 28, 2023, at 2.93, indicating a higher level of financial leverage during that period. Subsequently, there was a decrease in financial leverage to 2.20 on February 28, 2022, followed by an increase to 2.64 on February 29, 2024.

This suggests that the company has been utilizing more debt financing in recent years to support its operations and growth initiatives. A higher financial leverage ratio indicates that a company relies more on debt to finance its assets, which may potentially lead to higher financial risk but could also amplify returns on equity.

It is important for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risks effectively.