Constellation Brands Inc Class A (STZ)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Constellation Brands Inc Class A has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 over several periods, indicating that the company has no debt relative to its total assets, capital, and equity. This suggests that the company's assets are primarily financed by equity rather than debt.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown some fluctuation but generally remained relatively stable over the periods analyzed. The ratio ranged from 1.99 to 3.03, with an upward trend in recent periods. This indicates that while the company has a low level of debt, it has been gradually increasing its leverage over time.
Overall, Constellation Brands Inc Class A's solvency ratios reflect a sound financial position with a conservative debt structure. The company's ability to keep its debt levels low while maintaining a stable financial leverage ratio suggests a prudent approach to managing its capital structure and financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.31 | 2.82 | 2.76 | 7.98 | 6.15 | 5.45 | 5.42 | 1.21 | 1.96 | 2.69 | 2.66 | 5.87 | 1.86 | 1.83 | 4.22 | 5.57 | 9.16 | 9.05 | 4.55 | 1.14 |
Based on the data provided, Constellation Brands Inc Class A's interest coverage ratio has varied over the periods specified.
The interest coverage ratio measures the company's ability to meet interest payments on its debt obligations from its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Constellation Brands Inc's interest coverage ratio fluctuated significantly during the analyzed periods, ranging from a low of 0.31 on February 28, 2025, to a high of 9.16 on February 28, 2021. The ratio was below 1 for several periods, indicating that the company's operating income was not sufficient to cover its interest expenses during those times. This could potentially signal financial distress or a higher risk of default on its debt obligations.
It's worth noting that during some periods, the interest coverage ratio improved significantly, reaching levels above 5, which suggests a better ability to handle interest payments from operating profits. However, the inconsistency in the interest coverage ratio over the years may indicate potential variability in the company's financial performance and debt management.
In summary, Constellation Brands Inc's interest coverage ratio has shown fluctuations over the analyzed periods, with some periods indicating potential financial strength while others imply potential financial challenges related to meeting interest obligations with operating income. Monitoring this ratio over time is crucial for assessing the company's financial health and its ability to service its debt.
See also:
Constellation Brands Inc Class A Solvency Ratios (Quarterly Data)