Constellation Brands Inc. (NYSE:STZ)

The analysis of the annual financial data reveals a fluctuating trend in both total assets and adjusted total assets over the six-year period from 2017 to 2022.

Total Assets

The total assets show a consistent increase from 18,602,400 thousand USD in 2017 to a peak of 29,231,500 thousand USD in 2019. This represents a significant growth, indicating asset accumulation during this period. However, after 2019, total assets decline steadily to 25,855,800 thousand USD by 2022. This downward trend suggests asset disposals or depreciation, which might be due to strategic decisions, market conditions, or operational restructuring.

Adjusted Total Assets

The adjusted total assets follow a similar pattern, starting at 18,996,511 thousand USD in 2017 and rising to 27,498,624 thousand USD in 2019. Post-2019, there is a noticeable decrease each year, reaching 23,504,300 thousand USD in 2022. This adjustment likely accounts for certain asset valuations or write-downs and underscores the same pattern of asset reduction observed in total assets.

Comparative Observations

Throughout the period, adjusted total assets consistently exceed the reported total assets, which may reflect conservative asset valuation or inclusion of additional asset components in the adjusted measure. Both metrics demonstrate peak asset levels in 2019 followed by notable contraction, suggesting a pivotal change in asset management or external financial conditions impacting the company's asset base after that year.

The financial data indicates fluctuations in current liabilities over the six-year period. Initially, current liabilities were valued at approximately 2,697,600 thousand USD as of February 28, 2017. The following year saw a noticeable decline to about 1,944,700 thousand USD, indicating a reduction in short-term obligations.

However, in the year ending February 28, 2019, there was a marked increase to approximately 3,163,800 thousand USD, the highest value within the dataset. This spike suggests a substantial rise in obligations due within a year, which could reflect increased operational activities or other short-term financing needs.

Subsequently, current liabilities decreased significantly to around 2,311,800 thousand USD in 2020 and declined even further to the lowest point of approximately 1,269,100 thousand USD in 2021. This downward trend may point to improved liquidity management or payoff of short-term debt.

In the final year recorded, February 28, 2022, current liabilities increased again to roughly 2,699,800 thousand USD, nearly recovering to the initial 2017 level. This resurgence could suggest renewed short-term borrowing or an increase in accounts payable.

The adjusted current liabilities follow an almost identical pattern with minimal deviation, confirming consistency in adjustments applied to this liability category.

Trend Summary

2017-2018

Significant decrease in current liabilities, suggesting reduction in short-term financial obligations.

2018-2019

Sharp increase to highest observed level, potentially reflecting increased operational or financial activity.

2019-2021

Steady and significant decrease to lowest level, indicating improved debt management or reduced short-term liabilities.

2021-2022

Substantial rebound to near-2017 levels, possibly due to renewed short-term borrowing or higher payables.

Adjusted Current Liabilities

Align closely with reported current liabilities, implying minimal adjustments and data reliability.

The analysis of the total and adjusted total liabilities over the period from February 28, 2017, to February 28, 2022, reveals several notable trends. Both measures indicate variability in the company's liabilities, with fluctuations rather than consistent growth or decline.

Total Liabilities

The total liabilities showed an initial upward trend from $11,717,600 thousand in 2017 to a peak of $16,394,300 thousand in 2019. Following this peak, there was a decline in total liabilities in 2020 and 2021, reaching $13,175,700 thousand by February 28, 2021. However, in 2022, total liabilities increased slightly again to $13,808,000 thousand.

Adjusted Total Liabilities

The adjusted total liabilities exhibit a similar pattern to the total liabilities. Starting at approximately $10,979,311 thousand in 2017, these liabilities rose sharply to $15,815,024 thousand by 2019. Afterward, a downward trend is observed in 2020 and 2021, with adjusted liabilities decreasing to $12,606,000 thousand. In 2022, there is a moderate increase, ending at around $13,156,100 thousand.

Comparative Insights

The adjusted total liabilities are consistently lower than total liabilities across all years, indicating certain liabilities were excluded or recalibrated in the adjusted figures. Both total and adjusted liabilities follow parallel trends, reflecting underlying changes in the company's obligation levels over the period.

Overall, the liabilities demonstrate a period of significant increase until 2019, followed by a general reduction through 2021, and a moderate rebound in 2022. This pattern may point to strategic financial management decisions, possibly aimed at reducing leverage during 2020 and 2021, with a slight increase in liabilities in the most recent year observed.

The data reveals the trends in total and adjusted stockholders' equity for the analyzed periods. The total stockholders' equity exhibits a general upward trajectory from 2017 through 2021, increasing from approximately 6.89 billion USD to nearly 13.60 billion USD. This represents nearly a doubling of equity over the five-year span. However, in 2022 there is a notable decline to approximately 11.73 billion USD, which indicates a contraction after several years of growth.

The adjusted total stockholders' equity follows a somewhat similar pattern but with differing magnitudes and fluctuations. Starting at about 8.02 billion USD in 2017, this measure increased to 11.68 billion USD by 2019, albeit with a less consistent growth path compared to total stockholders' equity. It then declines sharply to approximately 10.20 billion USD in 2020, before recovering to 12.01 billion USD in 2021. Subsequently, a decline is again observed in 2022, dropping to roughly 10.35 billion USD.

Trend overview

Total stockholders' equity generally increased from 2017 through 2021, peaking in 2021 and then declining in 2022.

Adjusted stockholders' equity shows more volatility, with notable decreases in 2020 and 2022 after periods of growth.

Year-to-year changes

Between 2017 and 2018, both total and adjusted equity increased moderately, suggesting stable growth.

From 2018 to 2019, total stockholders' equity rose significantly, indicating an expansion phase, while adjusted equity rose as well but less sharply.

The year 2020 marks a decline in adjusted equity despite total equity remaining relatively stable, possibly reflecting adjustments or revaluations affecting the adjusted figure more significantly.

In 2021, both equity measures rebounded, with total equity reaching its highest value in the observed period, indicating a recovery or growth.

The decline in both measures in 2022 suggests challenges such as operational setbacks, market conditions affecting equity, or other financial adjustments.

Insight

The consistent increase in total stockholders’ equity over most years suggests that the company had been growing its net assets or shareholder investment until 2021. The volatility and sharper declines in adjusted stockholders’ equity imply the presence of adjustments, perhaps related to asset revaluations, impairments, or other accounting treatments, which affected the adjusted figures more noticeably.

The sharp reversals in equity in the last two years highlight potential areas for further investigation to understand the factors influencing these declines and their implications for financial stability.

Total Reported Debt

The total reported debt increased steadily from 9.24 billion in 2017 to a peak of 13.62 billion in 2019. Following this peak, the debt declined to 12.18 billion in 2020 and further to around 10.44 billion by 2021 and remained relatively stable at approximately 10.42 billion in 2022. This indicates a deleveraging trend after 2019.

Total CBI Stockholders’ Equity

Stockholders’ equity showed a consistent upward trajectory from 6.89 billion in 2017 to a significant high of 13.60 billion in 2021. However, in 2022, equity declined to 11.73 billion, signaling a reduction after reaching the peak. This suggests that the company strengthened its equity base until 2021 before experiencing a setback.

Total Reported Capital

Total reported capital, combining debt and equity, rose markedly from 16.13 billion in 2017 to 26.17 billion in 2019, reflecting both debt and equity growth. From 2019 onward, the capital declined gradually to 24.31 billion in 2020 and further to 22.15 billion by 2022, indicating an overall reduction in the company’s financing base post-2019.

Adjusted Total Debt

The adjusted total debt followed a similar pattern to reported debt, rising from 9.63 billion in 2017 to a peak of 14.07 billion in 2019. It subsequently declined to approximately 12.75 billion in 2020 and continued decreasing to about 10.95 billion by 2022. This confirms a consistent deleveraging trend shown in adjusted figures.

Adjusted Total Stockholders’ Equity

Adjusted stockholders’ equity showed growth from 8.02 billion in 2017 to 11.68 billion in 2019, followed by a decline to 10.20 billion in 2020. Equity then increased again to 12.01 billion in 2021 but dropped to 10.35 billion in 2022. The patterns reflect moderate volatility, with an overall growth trend interrupted by recent declines.

Adjusted Total Capital

Adjusted total capital increased from 17.65 billion in 2017 to 25.75 billion in 2019. It subsequently declined to 22.95 billion in 2020, slightly recovering to 22.99 billion in 2021 before falling again to 21.30 billion in 2022. The data suggests stabilization efforts with fluctuating capital levels in recent years.

The annual financial data reveals a steadily increasing trend in both net sales and adjusted net sales over the six-year period from February 2017 to February 2022. The values are consistently reported in thousands of US dollars.

Net Sales

Net sales demonstrate a continuous upward trajectory, starting at 7,331,500 thousand US dollars in February 2017 and increasing to 8,820,700 thousand US dollars by February 2022. This represents a compound growth over the five intervals, with each year showing a variable but positive increment. The growth suggests effective revenue generation and potentially increasing market demand or successful sales strategies.

Adjusted Net Sales

Adjusted net sales follow a parallel trajectory to net sales throughout the observed period. Beginning at the same level of 7,331,500 thousand US dollars in 2017, adjusted net sales reach 8,939,000 thousand US dollars in 2022, slightly surpassing the reported net sales figure in the final year. This adjustment hints at refinements or corrections in reported sales figures, possibly reflecting more accurate revenue recognition or adjustments for returns, allowances, or other factors.

Overall, the data indicates stable and consistent growth in sales performance with no apparent volatility or declines. The slight difference in adjusted net sales compared to net sales in the most recent year suggests careful financial reporting practices. The upward sales trend supports a positive outlook on the company’s revenue-generating capacity over the examined time frame.

Net Income (Loss) Attributable to CBI

The net income displayed a significant upward trend from February 28, 2017, to February 28, 2019, rising from $1,535,100 thousand to $3,435,900 thousand. However, this positive momentum sharply reversed in the fiscal year ending February 29, 2020, resulting in a net loss of $11,800 thousand. Subsequently, the company experienced a rebound in net income in the year ending February 28, 2021, with a profit of $1,998,000 thousand. Nonetheless, the following year again saw a return to a loss, amounting to $40,400 thousand at February 28, 2022. Overall, net income showed volatility with notable swings between profit and loss after the 2019 peak.

Adjusted Net Income

The adjusted net income also followed an upward trajectory initially, increasing from $1,699,200 thousand in February 28, 2017, to $3,731,400 thousand in February 28, 2019. Starting in the fiscal year ending February 29, 2020, there was a substantial decline, with a large adjusted net loss of $1,038,900 thousand. This was followed by a recovery to $2,276,800 thousand in the year ending February 28, 2021. However, the adjusted net income sharply dropped again to $120,500 thousand by February 28, 2022. The adjusted figures reflect greater volatility relative to net income, indicating significant adjustments impacting profitability in the more recent periods.

Overall Trends and Insights

Both net income and adjusted net income exhibited considerable fluctuations over the six-year period, with peak profitability occurring in fiscal 2019. The year 2020 marked a severe downturn with losses recorded both in net and adjusted figures. Partial recovery took place in 2021; however, the return to losses or markedly lower profits in 2022 suggests ongoing challenges affecting financial performance. The divergence and volatility in adjusted net income, in particular, point to potentially significant one-time or non-recurring items impacting earnings quality and stability during recent years.