Analysis of Geographic Areas
Constellation Brands Inc. operates in 2 regions: U.S. and Non-U.S..
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Area Asset Turnover
Constellation Brands Inc., asset turnover by geographic area
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Non-U.S. |
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 annual geographic area asset turnover data indicates distinct trends between the U.S. and Non-U.S. segments over the six-year period.
- U.S. Asset Turnover
- The U.S. asset turnover ratio shows an initial slight decline from 6.56 in 2017 to 6.52 in 2018. This was followed by a notable increase to 7.00 in 2019 and a substantial peak of 9.04 in 2020. After reaching this peak, the ratio declined in the subsequent years, dropping to 8.35 in 2021 and further to 7.86 in 2022. Overall, the U.S. segment demonstrates a strong upward trajectory until 2020, with a decrease afterward that still maintains ratios above the early period levels.
- Non-U.S. Asset Turnover
- The Non-U.S. asset turnover ratio remains very low and relatively stable across all years. Starting at 0.18 in 2017, it sharply declined to 0.07 in 2018 and further decreased to a consistent level of 0.05 from 2019 through 2022. This indicates minimal variation and suggests limited asset turnover activity in the Non-U.S. markets during the observed timeframe.
In summary, the U.S. segment shows a dynamic pattern with growth peaking in 2020 followed by a moderate decline, while the Non-U.S. segment remains stagnant with consistently low asset turnover ratios. The data reflects a much stronger asset utilization in the U.S. compared to international operations.
Area Asset Turnover: U.S.
Constellation Brands Inc.; U.S.; area asset turnover calculation
| 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 | ||||||
| Long-lived tangible assets | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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 2022 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= ÷ =
The analysis of the annual data reveals several noteworthy trends over the six-year period ending in February 2022.
- Net Sales
- The net sales figures demonstrate consistent growth throughout the observed timeframe. Starting at approximately 6,807,700 thousand US dollars in 2017, sales increased each year, reaching 8,585,800 thousand US dollars by 2022. This steady upward trajectory indicates a positive sales performance, with the company achieving a cumulative increase of around 26% over six years.
- Long-lived Tangible Assets
- Long-lived tangible assets show some variability during the period. Beginning at 1,037,600 thousand US dollars in 2017, these assets increased slightly through 2018 and 2019, peaking near 1,127,700 thousand US dollars in 2019. A notable decline occurred in 2020, with the assets falling to 897,700 thousand US dollars, possibly reflecting asset disposals or impairments in that year. Subsequently, the asset base recovered gradually in 2021 and 2022, reaching 1,092,000 thousand US dollars, though not quite attaining the 2019 peak level.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures efficiency in generating sales from assets, fluctuated during the period. It started at 6.56 in 2017 and held steady in 2018. A rise was observed in 2019, increasing to 7.00 and then sharply climbing to a peak of 9.04 in 2020. Following this peak, the ratio declined to 8.35 in 2021 and further to 7.86 in 2022. This pattern suggests an improvement in sales efficiency reaching a high point in 2020, likely due to the drop in tangible assets that year, and then a normalization as asset values recovered.
In summary, the company experienced sustained growth in net sales concurrent with fluctuations in long-lived tangible assets. The efficiency metric peaked in 2020, influenced by a temporary contraction in asset base, and then moderated as assets were replenished. Overall, the data indicate effective sales growth alongside asset management adjustments within the U.S. geographic area over the examined periods.
Area Asset Turnover: Non-U.S.
Constellation Brands Inc.; Non-U.S.; area asset turnover calculation
| 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 | ||||||
| Long-lived tangible assets | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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 2022 Calculation
Area asset turnover = Net sales ÷ Long-lived tangible assets
= ÷ =
- Net Sales
- Net sales from the non-U.S. geographic area experienced a notable decline from 2017 to 2019, dropping from $523.8 million to $221.2 million. This downward trend continued with minor fluctuations, reaching $218.4 million in 2021 before slightly increasing to $234.9 million in 2022. Overall, net sales contracted significantly over the analyzed period, indicating possible challenges or reduced market activity in this region.
- Long-lived Tangible Assets
- The value of long-lived tangible assets showed a consistent upward trajectory throughout the period. Starting at $2.895 billion in 2017, these assets grew steadily each year, reaching $4.967 billion by 2022. This continuous asset growth suggests ongoing investments or acquisitions in the non-U.S. area, potentially aimed at strengthening long-term operational capacity.
- Area Asset Turnover
- Area asset turnover, measuring efficiency in using assets to generate sales, declined sharply from 0.18 in 2017 to 0.07 in 2018, followed by a further decrease to 0.05 in 2019. From 2019 onward, the ratio remained stable at 0.05 through 2022. The decline and subsequent stabilization at a low ratio point to reduced efficiency in asset utilization, possibly reflecting the disproportionate increase in long-lived assets relative to net sales.
Net sales
Constellation Brands Inc., net sales by geographic area
US$ in thousands
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Non-U.S. | ||||||
| Total |
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).
- U.S. Net Sales
- The U.S. net sales exhibited a consistent upward trend over the six-year period. Starting at $6,807,700 thousand in 2017, sales increased year-over-year, reaching $8,585,800 thousand in 2022. This represents a steady growth trajectory with no observed declines, indicating a strong and stable market presence within the United States. The year-over-year increases, while varying in magnitude, suggest continuous expansion in net sales within this geographic area.
- Non-U.S. Net Sales
- The Non-U.S. net sales showed a declining trend from 2017 through 2021, beginning at $523,800 thousand in 2017 and decreasing sharply to a low of $218,400 thousand by 2021. In 2022, a modest recovery occurred, with net sales rising to $234,900 thousand. Despite this slight rebound, the overall trend indicates challenges in growth or market contraction outside the U.S. during most of the period analyzed.
- Total Net Sales
- Total net sales, combining U.S. and Non-U.S. revenues, showed steady growth from $7,331,500 thousand in 2017 to $8,820,700 thousand in 2022. The growth pattern closely mirrors that of the U.S. segment, reflecting its predominance in the company's revenue mix. The subdued Non-U.S. sales contributed less significantly to total growth and somewhat dampened the overall pace.
- Overall Insights
- The data reveals a strong and stable sales growth in the U.S. market, which is the primary driver of total company net sales. In contrast, the company's international sales faced a declining trajectory for most of the period, with a slight improvement in the final year recorded. The total revenues increased steadily, with the U.S. performance overshadowing the weaker Non-U.S. results. These trends suggest that the company's growth strategy and market success have been more effective domestically than internationally during the period analyzed.
Long-lived tangible assets
Constellation Brands Inc., long-lived tangible assets by geographic area
US$ in thousands
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Non-U.S. | ||||||
| Total |
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).
- U.S. Long-Lived Tangible Assets
- From February 28, 2017, to February 28, 2022, the value of long-lived tangible assets in the U.S. showed some fluctuation. Initially, there was an increase from $1,037,600 thousand in 2017 to $1,124,500 thousand in 2018, followed by a slight rise to $1,127,700 thousand in 2019. However, in 2020, a notable decrease occurred, with the value declining to $897,700 thousand. After this dip, the assets rebounded, reaching $1,005,300 thousand in 2021 and further increasing to $1,092,000 thousand by 2022. Overall, the U.S. assets experienced moderate volatility with a significant drop in 2020, possibly due to external factors affecting asset valuation or disposals during that year.
- Non-U.S. Long-Lived Tangible Assets
- The non-U.S. long-lived tangible assets consistently increased over the six-year period. Starting at $2,895,200 thousand in 2017, these assets expanded substantially each year, reaching $3,665,200 thousand in 2018, $4,139,600 thousand in 2019, $4,435,300 thousand in 2020, $4,816,300 thousand in 2021, and finally $4,967,600 thousand in 2022. The continuous growth reflects ongoing investments or acquisitions in assets outside the U.S., with no observed declines or stagnations.
- Total Long-Lived Tangible Assets
- The total long-lived tangible assets, which combine both U.S. and non-U.S. values, indicated a steady upward trend across the examined timeframe. Beginning at $3,932,800 thousand in 2017, the total assets climbed consistently to $4,789,700 thousand in 2018, $5,267,300 thousand in 2019, and $5,333,000 thousand in 2020. Growth accelerated in the following years, reaching $5,821,600 thousand in 2021 and $6,059,600 thousand in 2022. The increase in total assets primarily reflects the strong and continuous growth in non-U.S. assets, supplemented by the partial recovery of U.S. assets after the 2020 dip.
- Summary
- Overall, the data reveals a dominant growth in non-U.S. long-lived tangible assets, which is the main contributor to the increase in total assets over the period. U.S. assets showed a less consistent pattern, including a pronounced decrease in 2020, followed by a recovery through 2022. This divergence suggests different regional investment dynamics or asset management strategies. The total assets continued to grow without interruption, underscoring an expansion in the company's asset base globally despite regional fluctuations.