Constellation Brands Inc Class A (STZ)

Financial leverage 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
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
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
Financial leverage ratio		2.64	2.65	2.65	2.88	2.93	2.92	2.59	2.30	2.20	2.27	2.26	2.14	1.99	2.08	2.26	2.36	2.25	2.31	2.42	2.38

February 29, 2024 calculation

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

Constellation Brands Inc Class A's financial leverage ratio has shown some fluctuations over the past few reporting periods. The ratio has ranged from a low of 1.99 to a high of 2.93, with an average around 2.40. This indicates that the company's level of debt relative to equity has varied, but generally, the company has been employing moderate financial leverage.

An upward trend in the financial leverage ratio may suggest that Constellation Brands Inc Class A is taking on more debt to finance its operations or investment activities. Conversely, a decreasing trend could indicate a reduction in debt levels or an increase in shareholder equity.

It is important to note that a higher financial leverage ratio implies a higher level of financial risk for the company, as it indicates a greater reliance on debt financing. Investors and analysts should closely monitor changes in the financial leverage ratio to assess the company's ability to meet its financial obligations and manage its debt effectively.