Constellation Brands Inc Class A (STZ)
Solvency ratios
| 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 | Feb 29, 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 | 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 | 2.25 |
Based on the provided data, Constellation Brands Inc Class A's solvency ratios indicate a consistently strong financial position with negligible debt levels relative to its assets and capital.
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 throughout the periods analyzed. This indicates that Constellation Brands has essentially zero debt in relation to its total assets, suggesting a low financial risk and a strong ability to cover its liabilities.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remains at 0.00 across all periods. This signifies that the company's debt is minimal compared to its total capital, which includes both debt and equity. A lower debt-to-capital ratio is generally favorable as it reflects lower financial leverage and less dependence on borrowed funds.
3. Debt-to-equity ratio: The debt-to-equity ratio also consistently stands at 0.00 in all the reported periods. This ratio indicates the proportion of debt and equity financing used by the company. A ratio of 0.00 implies that Constellation Brands relies entirely on equity rather than debt to finance its operations, highlighting a conservative financial structure.
4. Financial leverage ratio: The financial leverage ratio, which indicates the extent to which the company relies on debt financing, has shown some minor fluctuations but overall ranges from 1.99 to 2.93 across the periods analyzed. While there is a slight increase in leverage towards the latter periods, the ratios are still relatively low, reflecting a prudent approach to managing debt and financial risk.
In conclusion, Constellation Brands Inc Class A's solvency ratios consistently demonstrate a robust financial position characterized by minimal debt levels, low leverage, and a strong reliance on equity financing. This indicates solid financial stability and the company's ability to meet its financial obligations without significant strain.
Coverage ratios
| 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 | Feb 29, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | -1.08 |
The interest coverage ratio for Constellation Brands Inc Class A has shown fluctuations over the past few years, indicating varying levels of ability to meet interest payments on outstanding debt obligations.
Starting from negative figures in early 2020, the interest coverage improved significantly by the end of the same year and continued to rise through early 2021, showing a strong ability to cover interest expenses multiple times over. However, the ratio decreased in mid-2021 and continued to decline, reaching a low point in early 2023.
Although the interest coverage ratio saw some recovery in mid-2023 and remained relatively stable through late 2024, it is notable that the company's ability to cover interest payments fluctuated throughout the period analyzed. The lower ratios in some periods may indicate increased financial risk due to higher levels of debt relative to earnings, while the higher ratios suggest improved financial health and lower risk.
Overall, it is important for Constellation Brands Inc Class A to closely monitor its interest coverage ratio and ensure it remains at a level that provides sufficient financial flexibility and stability to meet its interest obligations effectively.
See also:
Constellation Brands Inc Class A Solvency Ratios (Quarterly Data)