Common-Size Balance Sheet: Assets
Quarterly Data
Constellation Brands Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-K (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-K (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-K (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-K (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-Q (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-K (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-Q (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31).
The asset composition of the company underwent a significant structural shift between May 2016 and November 2022, characterized by a transition from high concentrations of intangible assets toward a greater emphasis on tangible operating assets. Total current assets generally declined as a percentage of total assets over the period, while noncurrent assets expanded their dominance in the balance sheet.
- Current Asset Trends
- Current assets decreased from a high of 18.80% in November 2016 to a low of 11.23% in February 2021, before recovering to 14.41% by November 2022. This fluctuation was primarily driven by a substantial reduction in inventory levels, which dropped from approximately 11% of total assets in 2016 to a trough of 4.76% in February 2021, subsequently rising back to 7.37% by the end of the period. Cash and cash equivalents remained consistently low, typically oscillating below 2% of total assets, indicating a lean liquidity strategy.
- Intangible Asset and Goodwill Devaluation
- A pronounced downward trend is observed in the proportion of goodwill and intangible assets. Combined, these items represented approximately 61.2% of total assets in May 2016. By November 2022, this combined share fell to 43.49%, with goodwill decreasing from 41.69% to 32.28% and intangible assets declining from 19.51% to 11.21%. This suggests either a systematic amortization of intangibles, impairment charges, or the organic growth of other asset classes diluting these proportions.
- Tangible Asset Expansion
- Property, plant, and equipment (PP&E) demonstrated a steady long-term increase, rising from 19.89% of total assets in May 2016 to 26.67% in November 2022. This trend indicates a strategic reallocation of capital toward physical infrastructure and production capacity, offsetting the decline in intangible asset weight.
- Investment and Tax Asset Volatility
- Significant shifts occurred in non-operating assets starting in 2019. Equity method investments and securities measured at fair value appeared prominently in early 2019, peaking at 12.85% and 11.07% respectively. However, both categories saw sharp declines by late 2022, with securities falling to 0.39% and equity method investments to 3.15%. Conversely, deferred income taxes emerged as a stable component of the balance sheet from 2019 onward, maintaining a range between 7.47% and 9.94%.
Overall, the balance sheet reflects a transition toward a more tangible asset base. The reduction in the relative weight of goodwill and intangibles, coupled with the increase in PP&E, suggests a shift in the company's asset intensity and a potential move away from acquisition-driven growth toward internal capacity expansion.
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