Constellation Brands Inc Class A (STZ)

Solvency ratios

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
Debt-to-assets ratio 0.42 0.41 0.43 0.44 0.46 0.46 0.42 0.40 0.37 0.40 0.40 0.38 0.38 0.38 0.42 0.45 0.41 0.42 0.44 0.41
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
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
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

Constellation Brands Inc Class A's solvency ratios have shown some fluctuations over the last few quarters. The debt-to-assets ratio has ranged from 0.37 to 0.46 during the period under review, indicating that the company maintains a moderate level of debt in relation to its total assets.

The debt-to-capital ratio has varied between 0.45 and 0.57, suggesting that Constellation Brands has financed its operations with a combination of debt and equity, with a tendency towards higher debt levels in some quarters.

The debt-to-equity ratio has seen fluctuations between 0.77 and 1.35, demonstrating a mix of debt and equity in the company's capital structure, with some quarters showing higher reliance on debt.

The financial leverage ratio has ranged from 1.99 to 2.93, indicating the company's level of financial risk and dependency on debt financing, with some quarters showing higher leverage compared to others.

Overall, Constellation Brands Inc Class A's solvency ratios reflect a company that has maintained a relatively stable level of debt in relation to its assets, capital, and equity, but has shown variability in its financial leverage over the period analyzed.

Coverage ratios

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
Interest coverage 7.28 6.68 6.65 6.52 7.13 8.31 8.82 8.58 6.54 6.14 5.86 6.06 7.24 — 667.78 18.60 -15.00 1.14 2.61 7.81

Constellation Brands Inc Class A's interest coverage ratio has shown fluctuations over the past several quarters. The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income.

Between February 2019 and February 2020, Constellation Brands Inc Class A maintained a stable interest coverage ratio ranging from 6.14 to 7.24, reflecting a healthy ability to cover its interest expenses with its operating income.

However, there was a significant anomaly in the interest coverage ratio reported for August 2020, where it spiked to 667.78. Such a high value is unusual and may be due to certain extraordinary or non-recurring factors affecting the financial data for that period.

In the subsequent quarters, the interest coverage ratio improved from the negative value in November 2020 to more normalized levels above 5, indicating a recovery in the company's ability to cover its interest expenses. The interest coverage ratio peaked at 8.82 in August 2022, showing a strong ability to cover interest obligations during that period.

Overall, Constellation Brands Inc Class A's interest coverage ratio has generally been at adequate levels, but investors may need to analyze the underlying reasons for the outlier values, such as the exceptionally high ratio reported in August 2020, to assess the company's financial health accurately.

See also:

Constellation Brands Inc Class A Solvency Ratios (Quarterly Data)