Name: Constellation Brands Inc. (NYSE:STZ) | Analysis of Inventory
Creator: Stock Analysis on Net

Analysis of Inventory

Inventory Disclosure

Inventory Disclosure

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Constellation Brands Inc., balance sheet: inventory

US$ in thousands

	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020	Feb 28, 2019	Feb 28, 2018	Feb 28, 2017
Raw materials and supplies	185,300)	151,100)	171,700)	182,600)	160,800)	149,700)
In-process inventories	804,800)	735,900)	814,700)	1,480,500)	1,382,800)	1,260,100)
Finished case goods	583,100)	404,100)	387,200)	467,300)	540,400)	545,300)
Inventories	1,573,200)	1,291,100)	1,373,600)	2,130,400)	2,084,000)	1,955,100)

Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28).

Total inventory levels exhibited a period of growth between 2017 and 2019, peaking at 2,130,400 thousand US dollars before experiencing a significant contraction. A sharp decline occurred in 2020, with values dropping to 1,373,600 thousand US dollars, followed by a further slight decrease in 2021. However, a recovery trend emerged by February 28, 2022, as total inventories rose to 1,573,200 thousand US dollars.

Raw Materials and Supplies: This component remained the most stable portion of the inventory portfolio. Values fluctuated within a relatively narrow range, starting at 149,700 thousand US dollars in 2017 and ending at a six-year high of 185,300 thousand US dollars in 2022. The growth in this category was gradual, with a temporary dip in 2021 before the subsequent increase.
In-Process Inventories: In-process inventories represented the largest share of total inventory and were the primary driver of overall volatility. After increasing from 1,260,100 thousand US dollars in 2017 to a peak of 1,480,500 thousand US dollars in 2019, a substantial reduction occurred in 2020, where the value fell to 814,700 thousand US dollars. This level remained relatively depressed through 2021 and 2022, indicating a structural shift in the volume of goods undergoing production.
Finished Case Goods: Finished goods displayed a U-shaped trajectory. A consistent downward trend was observed from 2017 (545,300 thousand US dollars) through 2020 (387,200 thousand US dollars). This trend reversed sharply in 2022, with finished case goods reaching 583,100 thousand US dollars, the highest value recorded in the analyzed period. This suggests an increase in completed stock levels toward the end of the timeline.

The overall inventory composition shifted significantly over the six-year period. The reliance on high volumes of in-process inventories seen between 2017 and 2019 was replaced by a more balanced distribution by 2022, where the increase in finished case goods and raw materials offset the permanent reduction in in-process stock levels.

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