Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Constellation Brands Inc., ROIC calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 498,399) | 2,686,552) | (778,137) | 4,189,068) | 2,136,576) | 1,893,872) | |
| Invested capital2 | 20,491,900) | 21,239,800) | 21,790,300) | 24,890,124) | 18,550,367) | 17,413,511) | |
| Performance Ratio | |||||||
| ROIC3 | 2.43% | 12.65% | -3.57% | 16.83% | 11.52% | 10.88% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Altria Group Inc. | 19.97% | 6.66% | 12.64% | -1.13% | — | — | |
| Coca-Cola Co. | 12.66% | 13.95% | 11.43% | 11.99% | — | — | |
| Mondelēz International Inc. | 4.72% | 7.69% | 6.29% | 6.06% | — | — | |
| PepsiCo Inc. | 13.48% | 13.79% | 12.03% | 14.37% | — | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 498,399 ÷ 20,491,900 = 2.43%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Constellation Brands Inc. ROIC improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Decomposition of ROIC
Constellation Brands Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2022 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Constellation Brands Inc., OPM calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 498,399) | 2,686,552) | (778,137) | 4,189,068) | 2,136,576) | 1,893,872) | |
| Add: Cash operating taxes2 | 302,832) | 259,325) | 281,244) | 339,562) | 553,637) | 547,177) | |
| Net operating profit before taxes (NOPBT) | 801,231) | 2,945,877) | (496,893) | 4,528,631) | 2,690,213) | 2,441,050) | |
| Net sales | 8,820,700) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Add: Increase (decrease) in deferred revenue | 118,300) | —) | —) | —) | —) | —) | |
| Adjusted net sales | 8,939,000) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Profitability Ratio | |||||||
| OPM3 | 8.96% | 34.20% | -5.96% | 55.80% | 35.47% | 33.30% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Altria Group Inc. | 34.06% | 19.17% | 30.97% | 7.75% | — | — | |
| Coca-Cola Co. | 29.15% | 33.91% | 32.86% | 29.41% | — | — | |
| Mondelēz International Inc. | 12.76% | 20.19% | 19.73% | 16.67% | — | — | |
| PepsiCo Inc. | 13.92% | 14.80% | 14.87% | 15.55% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 801,231 ÷ 8,939,000 = 8.96%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Constellation Brands Inc. OPM improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Turnover of Capital (TO)
Constellation Brands Inc., TO calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 8,820,700) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Add: Increase (decrease) in deferred revenue | 118,300) | —) | —) | —) | —) | —) | |
| Adjusted net sales | 8,939,000) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Invested capital1 | 20,491,900) | 21,239,800) | 21,790,300) | 24,890,124) | 18,550,367) | 17,413,511) | |
| Efficiency Ratio | |||||||
| TO2 | 0.44 | 0.41 | 0.38 | 0.33 | 0.41 | 0.42 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Altria Group Inc. | 0.87 | 0.78 | 0.63 | 0.59 | — | — | |
| Coca-Cola Co. | 0.54 | 0.48 | 0.44 | 0.51 | — | — | |
| Mondelēz International Inc. | 0.49 | 0.47 | 0.43 | 0.44 | — | — | |
| PepsiCo Inc. | 1.24 | 1.14 | 1.00 | 1.13 | — | — | |
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).
1 Invested capital. See details »
2 2022 Calculation
TO = Adjusted net sales ÷ Invested capital
= 8,939,000 ÷ 20,491,900 = 0.44
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Constellation Brands Inc. TO improved from 2020 to 2021 and from 2021 to 2022. |
Effective Cash Tax Rate (CTR)
Constellation Brands Inc., CTR calculation, comparison to benchmarks
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 498,399) | 2,686,552) | (778,137) | 4,189,068) | 2,136,576) | 1,893,872) | |
| Add: Cash operating taxes2 | 302,832) | 259,325) | 281,244) | 339,562) | 553,637) | 547,177) | |
| Net operating profit before taxes (NOPBT) | 801,231) | 2,945,877) | (496,893) | 4,528,631) | 2,690,213) | 2,441,050) | |
| Tax Rate | |||||||
| CTR3 | 37.80% | 8.80% | — | 7.50% | 20.58% | 22.42% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Altria Group Inc. | 32.69% | 55.22% | 35.24% | 124.76% | — | — | |
| Coca-Cola Co. | 19.26% | 14.55% | 20.29% | 19.32% | — | — | |
| Mondelēz International Inc. | 24.96% | 18.38% | 26.45% | 17.14% | — | — | |
| PepsiCo Inc. | 22.12% | 18.12% | 19.44% | 18.26% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 302,832 ÷ 801,231 = 37.80%
4 Click competitor name to see calculations.