Constellation Brands Inc Class A (STZ)

Financial leverage ratio

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Total assets	US$ in thousands	21,652,300	22,806,200	23,079,100	26,060,100	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
Total stockholders’ equity	US$ in thousands	7,134,800	7,817,800	7,870,800	10,251,800	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
Financial leverage ratio		3.03	2.92	2.93	2.54	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

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,652,300K ÷ $7,134,800K
= 3.03

Constellation Brands Inc Class A's financial leverage ratio has displayed fluctuations over the observed period, ranging from a low of 1.99 to a high of 3.03. The ratio measures the extent to which the company relies on debt financing as opposed to equity to fund its operations and investments.

Based on the data provided, the financial leverage ratio has generally been on an upward trend since February 28, 2022, indicating an increasing reliance on debt to finance operations. High leverage can amplify profits in good times but also increases risk, especially during economic downturns.

It is worth noting that the ratio peaked at 3.03 on February 28, 2025, which may indicate a significant increase in debt relative to equity in the company's capital structure. Investors and analysts should closely monitor this trend to assess the company's ability to manage its debt levels and financial risks effectively.