Debt to Equity
since 2005
Calculation
Constellation Brands Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total borrowings1 | ÷ | Total CBI stockholders’ equity1 | |
|---|---|---|---|---|---|
| Feb 28, 2022 | 0.89 | = | 10,416,500) | ÷ | 11,731,900) |
| Feb 28, 2021 | 0.77 | = | 10,442,300) | ÷ | 13,598,900) |
| Feb 29, 2020 | 1.00 | = | 12,184,600) | ÷ | 12,131,800) |
| Feb 28, 2019 | 1.08 | = | 13,616,500) | ÷ | 12,551,000) |
| Feb 28, 2018 | 1.27 | = | 10,186,700) | ÷ | 8,046,100) |
| Feb 28, 2017 | 1.34 | = | 9,238,100) | ÷ | 6,891,200) |
| Feb 29, 2016 | 1.23 | = | 8,081,200) | ÷ | 6,559,600) |
| Feb 28, 2015 | 1.27 | = | 7,348,000) | ÷ | 5,770,700) |
| Feb 28, 2014 | 1.41 | = | 7,020,500) | ÷ | 4,981,300) |
| Feb 28, 2013 | 1.16 | = | 3,305,400) | ÷ | 2,860,300) |
| Feb 29, 2012 | 1.17 | = | 3,129,500) | ÷ | 2,676,000) |
| Feb 28, 2011 | 1.27 | = | 3,236,300) | ÷ | 2,551,900) |
| Feb 28, 2010 | 1.49 | = | 3,835,500) | ÷ | 2,576,300) |
| Feb 28, 2009 | 2.32 | = | 4,433,600) | ÷ | 1,908,300) |
| Feb 29, 2008 | 1.90 | = | 5,257,500) | ÷ | 2,765,900) |
| Feb 28, 2007 | 1.22 | = | 4,185,500) | ÷ | 3,417,500) |
| Feb 28, 2006 | 0.94 | = | 2,809,727) | ÷ | 2,975,171) |
| Feb 28, 2005 | 1.18 | = | 3,289,276) | ÷ | 2,779,913) |
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), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
1 US$ in thousands
The capital structure of the organization has undergone significant transformations between 2005 and 2022, characterized by periods of aggressive borrowing followed by strategic deleveraging and equity growth.
- Leverage Volatility (2005–2009)
- The initial period was marked by a sharp increase in the debt-to-equity ratio, which climbed from 1.18 in 2005 to a peak of 2.32 in 2009. This spike was driven by a simultaneous increase in total borrowings and a contraction in stockholders' equity, which reached a period low of approximately 1.91 billion US dollars in 2009.
- Stabilization and Expansion (2010–2017)
- Following the 2009 peak, the leverage ratio normalized, fluctuating between 1.16 and 1.49. A notable shift occurred in 2014 when total borrowings more than doubled from 3.31 billion US dollars to 7.02 billion US dollars. Despite this substantial increase in debt, the ratio remained moderated due to a concurrent surge in stockholders' equity, which rose from 2.86 billion US dollars in 2013 to 4.98 billion US dollars in 2014.
- Debt Accumulation and Peak Borrowing (2018–2019)
- Total borrowings continued an upward trajectory, reaching a maximum of 13.62 billion US dollars in 2019. During this phase, equity grew aggressively to 12.55 billion US dollars, which served to offset the increased debt load and maintained the debt-to-equity ratio at a relatively stable 1.08.
- Deleveraging and Equity Strengthening (2020–2022)
- The most recent period shows a trend toward a more conservative financial posture. Total borrowings decreased from their 2019 peak to approximately 10.42 billion US dollars by 2022. This reduction in debt, paired with stockholders' equity peaking at 13.60 billion US dollars in 2021, resulted in the lowest debt-to-equity ratio of the entire analyzed period, reaching 0.77 in 2021 before slightly adjusting to 0.89 in 2022.
Overall, the long-term trend indicates a transition from a high-leverage position in the late 2000s to a more equity-heavy capital structure by 2022. The ability of the organization to scale its equity base has effectively mitigated the risks associated with the substantial increase in total borrowings observed after 2014.
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Comparison to Competitors
Constellation Brands Inc., debt to equity, long-term trends, comparison to competitors
| Constellation Brands Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 28, 2022 | 0.89 | 1.62 | 0.85 | 2.28 | — |
| Feb 28, 2021 | 0.77 | 1.86 | 0.69 | 2.51 | — |
| Feb 29, 2020 | 1.00 | 2.22 | 0.73 | 3.28 | — |
| Feb 28, 2019 | 1.08 | 2.25 | 0.68 | 2.17 | — |
| Feb 28, 2018 | 1.27 | 2.56 | 0.72 | 2.23 | — |
| Feb 28, 2017 | 1.34 | 2.79 | 0.68 | 3.61 | — |
| Feb 29, 2016 | 1.23 | 1.98 | 0.68 | 3.33 | — |
| Feb 28, 2015 | 1.27 | 1.73 | 0.55 | 2.79 | — |
| Feb 28, 2014 | 1.41 | 1.38 | 0.60 | 1.66 | — |
| Feb 28, 2013 | 1.16 | 1.12 | 0.53 | 1.22 | — |
| Feb 29, 2012 | 1.17 | 0.99 | 0.60 | 1.27 | — |
| Feb 28, 2011 | 1.27 | 0.90 | 0.76 | 1.30 | 80.98 |
| Feb 28, 2010 | 1.49 | 0.76 | 0.80 | 1.18 | 4.71 |
| Feb 28, 2009 | 2.32 | 0.48 | 0.73 | 0.47 | 2.70 |
| Feb 29, 2008 | 1.90 | 0.45 | 0.91 | 0.68 | 1.59 |
| Feb 28, 2007 | 1.22 | 0.43 | 0.77 | 0.24 | — |
| Feb 28, 2006 | 0.94 | 0.27 | 0.36 | 0.18 | — |
| Feb 28, 2005 | 1.18 | 0.35 | 0.36 | 0.37 | — |
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), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
Comparison to Sector (Food, Beverage & Tobacco)
Constellation Brands Inc., debt to equity, long-term trends, comparison to sector (food, beverage & tobacco)
| Constellation Brands Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 28, 2022 | 0.89 | 2.44 |
| Feb 28, 2021 | 0.77 | 2.28 |
| Feb 29, 2020 | 1.00 | 2.90 |
| Feb 28, 2019 | 1.08 | 2.51 |
| Feb 28, 2018 | 1.27 | 2.82 |
| Feb 28, 2017 | 1.34 | 3.31 |
| Feb 29, 2016 | 1.23 | 2.76 |
| Feb 28, 2015 | 1.27 | 2.32 |
| Feb 28, 2014 | 1.41 | 1.86 |
| Feb 28, 2013 | 1.16 | 1.36 |
| Feb 29, 2012 | 1.17 | 1.23 |
| Feb 28, 2011 | 1.27 | 1.15 |
| Feb 28, 2010 | 1.49 | 1.02 |
| Feb 28, 2009 | 2.32 | 0.74 |
| Feb 29, 2008 | 1.90 | 0.80 |
| Feb 28, 2007 | 1.22 | 0.52 |
| Feb 28, 2006 | 0.94 | 0.29 |
| Feb 28, 2005 | 1.18 | 0.36 |
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), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
Comparison to Industry (Consumer Staples)
Constellation Brands Inc., debt to equity, long-term trends, comparison to industry (consumer staples)
| Constellation Brands Inc. | Consumer Staples | |
|---|---|---|
| Feb 28, 2022 | 0.89 | 1.07 |
| Feb 28, 2021 | 0.77 | 1.07 |
| Feb 29, 2020 | 1.00 | 1.24 |
| Feb 28, 2019 | 1.08 | 1.18 |
| Feb 28, 2018 | 1.27 | 1.11 |
| Feb 28, 2017 | 1.34 | 1.20 |
| Feb 29, 2016 | 1.23 | 1.09 |
| Feb 28, 2015 | 1.27 | 1.00 |
| Feb 28, 2014 | 1.41 | 0.96 |
| Feb 28, 2013 | 1.16 | 0.87 |
| Feb 29, 2012 | 1.17 | 0.83 |
| Feb 28, 2011 | 1.27 | 0.80 |
| Feb 28, 2010 | 1.49 | 0.74 |
| Feb 28, 2009 | 2.32 | 0.69 |
| Feb 29, 2008 | 1.90 | 0.68 |
| Feb 28, 2007 | 1.22 | 0.55 |
| Feb 28, 2006 | 0.94 | 0.52 |
| Feb 28, 2005 | 1.18 | 0.59 |
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), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).