Stock Analysis on Net
Stock Analysis on Net

Constellation Brands Inc. (NYSE:STZ)

This company has been moved to the archive! The financial data has not been updated since January 5, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Constellation Brands Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 28, 2022 -0.34% = -0.16% × 2.20
Feb 28, 2021 14.69% = 7.37% × 1.99
Feb 29, 2020 -0.10% = -0.04% × 2.25
Feb 28, 2019 27.38% = 11.75% × 2.33
Feb 28, 2018 28.82% = 11.29% × 2.55
Feb 28, 2017 22.28% = 8.25% × 2.70

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2022 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Constellation Brands Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 28, 2022 -0.34% = -0.46% × 0.34 × 2.20
Feb 28, 2021 14.69% = 23.19% × 0.32 × 1.99
Feb 29, 2020 -0.10% = -0.14% × 0.31 × 2.25
Feb 28, 2019 27.38% = 42.33% × 0.28 × 2.33
Feb 28, 2018 28.82% = 30.57% × 0.37 × 2.55
Feb 28, 2017 22.28% = 20.94% × 0.39 × 2.70

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2022 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Constellation Brands Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 28, 2022 -0.34% = -0.15 × 0.43 × 7.09% × 0.34 × 2.20
Feb 28, 2021 14.69% = 0.80 × 0.87 × 33.60% × 0.32 × 1.99
Feb 29, 2020 -0.10% = — × — × -6.59% × 0.31 × 2.25
Feb 28, 2019 27.38% = 0.83 × 0.92 × 55.31% × 0.28 × 2.33
Feb 28, 2018 28.82% = 0.99 × 0.88 × 35.11% × 0.37 × 2.55
Feb 28, 2017 22.28% = 0.73 × 0.86 × 33.04% × 0.39 × 2.70

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2022 year is the decrease in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

Constellation Brands Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 28, 2022 -0.16% = -0.46% × 0.34
Feb 28, 2021 7.37% = 23.19% × 0.32
Feb 29, 2020 -0.04% = -0.14% × 0.31
Feb 28, 2019 11.75% = 42.33% × 0.28
Feb 28, 2018 11.29% = 30.57% × 0.37
Feb 28, 2017 8.25% = 20.94% × 0.39

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2022 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Constellation Brands Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 28, 2022 -0.16% = -0.15 × 0.43 × 7.09% × 0.34
Feb 28, 2021 7.37% = 0.80 × 0.87 × 33.60% × 0.32
Feb 29, 2020 -0.04% = — × — × -6.59% × 0.31
Feb 28, 2019 11.75% = 0.83 × 0.92 × 55.31% × 0.28
Feb 28, 2018 11.29% = 0.99 × 0.88 × 35.11% × 0.37
Feb 28, 2017 8.25% = 0.73 × 0.86 × 33.04% × 0.39

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2022 year is the decrease in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Constellation Brands Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 28, 2022 -0.46% = -0.15 × 0.43 × 7.09%
Feb 28, 2021 23.19% = 0.80 × 0.87 × 33.60%
Feb 29, 2020 -0.14% = — × — × -6.59%
Feb 28, 2019 42.33% = 0.83 × 0.92 × 55.31%
Feb 28, 2018 30.57% = 0.99 × 0.88 × 35.11%
Feb 28, 2017 20.94% = 0.73 × 0.86 × 33.04%

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).

The primary reason for the decrease in net profit margin ratio over 2022 year is the decrease in effect of taxes measured by tax burden ratio.