Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Cash Flow Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Price to Earnings (P/E) since 2005
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Long-term Activity Ratios (Summary)
Constellation Brands Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-K (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-K (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-K (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-K (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-Q (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a gradual decline from May 2017 through February 2022, decreasing from about 1.77 to approximately 1.46. This indicates a steady reduction in the efficiency with which the company utilized its fixed assets to generate sales over this period. Although there were minor fluctuations, particularly between August 2017 and November 2018 when the ratio hovered around 1.6, the overall trend points to diminishing asset productivity. The ratio remained relatively stable near 1.5 towards the end of the observed timeframe.
- Total Asset Turnover
- The total asset turnover ratio demonstrated an initial decline from 0.39 in May 2017 to a low of 0.28 by February 2019, signifying a decrease in overall asset utilization efficiency. Following this period, a slow recovery process became evident, with the ratio rising steadily to 0.39 by November 2022. This recovery suggests an improvement in how effectively the company employed all of its assets to generate revenues in the latter periods. Despite this rebound, the ratio remained modest, reflecting generally low turnover relative to sales.
- Equity Turnover
- Equity turnover showed a pronounced downward trend initially, decreasing from 1.00 in May 2017 to a low of 0.63 by February 2021. This decline points to a reduced capability to generate sales from shareholders' equity. However, there was a significant and notable rebound following this period, with the ratio increasing sharply to 1.14 by November 2022, surpassing the initial level at the start of the data series. This upward movement indicates a marked improvement in equity utilization efficiency in recent quarters.
- Summary
- The data reveals contrasting trends across the three turnover ratios. While net fixed asset turnover steadily declined, suggesting less efficient use of physical assets, total asset turnover initially fell but later approached earlier levels, indicating some recovery in overall asset use. In contrast, equity turnover experienced a significant decline followed by a strong recovery, ending the period higher than its initial value. These patterns may reflect changes in company strategy, asset base adjustments, or variations in sales performance over time, with the most pronounced improvement observed in equity efficiency in the final quarters.
Net Fixed Asset Turnover
Constellation Brands Inc., net fixed asset turnover calculation (quarterly data)
| Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Property, plant, and equipment | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-K (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-K (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-K (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-K (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-Q (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31).
1 Q3 2023 Calculation
Net fixed asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Property, plant, and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several key trends across net sales, property, plant, and equipment, as well as net fixed asset turnover over the analyzed periods.
- Net Sales
- Net sales show a fluctuating but generally upward trend from mid-2017 through late 2022. Starting at approximately 1.94 billion US dollars in May 2017, sales exhibit seasonal variations across quarters but reach a peak near 2.66 billion US dollars in August 2022. There are periodic dips, particularly evident around early 2020, likely reflecting external market disruptions. However, recovery is observed in subsequent periods, with sales levels increasing steadily throughout 2021 and into 2022.
- Property, Plant, and Equipment
- The company's investment in property, plant, and equipment demonstrates a consistent growth trajectory. Beginning at about 4.19 billion US dollars in May 2017, this asset base expands steadily each quarter, reaching roughly 6.52 billion US dollars by November 2022. This progressive increase indicates ongoing capital expenditures and asset base growth, potentially supporting operational capacity and future revenue generation.
- Net Fixed Asset Turnover
- The ratio of net fixed asset turnover, measuring the efficiency of asset utilization in generating sales, shows a declining pattern across the observed timeframe. Starting at 1.77 in May 2017, this ratio gradually decreases with minor fluctuations, falling to around 1.46 by November 2022. This decline suggests that while fixed assets have increased substantially, sales have not grown proportionally to maintain or improve asset turnover efficiency. Periodic minor rebounds occur, but the overall trend indicates diminishing efficiency or increased asset intensity in the business model.
In summary, the data reflects strong asset growth and a recovering and expanding sales base post-2020 disruptions. However, the declining fixed asset turnover ratio points toward a potential decrease in asset efficiency, warranting further investigation into capital deployment and operational utilization strategies.
Total Asset Turnover
Constellation Brands Inc., total asset turnover calculation (quarterly data)
| Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-K (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-K (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-K (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-K (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-Q (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31).
1 Q3 2023 Calculation
Total asset turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed quarterly financial data reveals several important trends in the company's operational performance and asset management over the observed periods.
- Net Sales
-
Net sales show a cyclical pattern with fluctuations across quarters, generally ranging from approximately 1.8 billion to 2.7 billion US dollars. There is an observable upward trend starting around mid-2020, where net sales increase notably, reaching a peak near the end of 2022. This suggests a recovery or growth phase following a relatively stable or slightly declining period in the years prior, especially noticeable in 2019 and early 2020.
- Total Assets
-
Total assets demonstrate an increasing trend from 2017 through early 2019, rising from about 18.9 billion to nearly 29.2 billion US dollars. However, from mid-2019 onward, total assets begin a gradual decline, decreasing to roughly 24.5 billion by the end of 2022. This reduction in asset base may reflect divestitures, asset impairments, or other strategic reallocation of resources.
- Total Asset Turnover
-
The total asset turnover ratio, which measures the efficiency of asset utilization to generate sales, starts relatively strong around 0.39 in mid-2017 but declines to a low point near 0.28 through 2018 and late 2019, indicating reduced efficiency in generating revenues from assets during this period. Starting in 2020, the ratio stabilizes and then improves, reaching 0.39 again by late 2022, which suggests a significant enhancement in asset utilization efficiency in recent quarters.
In summary, while total assets have decreased since their peak in early 2019, the company has managed to improve its asset turnover and increase net sales, particularly from 2020 onwards. This combination indicates that despite a smaller asset base, the company has been able to generate higher sales volumes and use its assets more effectively over time.
Equity Turnover
Constellation Brands Inc., equity turnover calculation (quarterly data)
| Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Total CBI stockholders’ equity | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-K (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-K (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-K (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-K (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-Q (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31).
1 Q3 2023 Calculation
Equity turnover
= (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
÷ Total CBI stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrated cyclical fluctuations over the periods analyzed. Initially, net sales showed growth from May 2017 through August 2017, followed by a decline by November 2017 and February 2018. Another clear upward trend occurred between May 2018 and August 2019, with sales peaking near 2,344,000 thousand USD. From that peak, sales declined through early 2020. Beginning in mid-2020, net sales recovered and reached a new high in August 2022 at approximately 2,655,100 thousand USD before slightly dropping again by November 2022. This pattern indicates seasonal or operational volatility but also overall growth potential up to the recent periods.
- Total Stockholders’ Equity
- Total equity increased notably from May 2017 to February 2019, nearly doubling from approximately 7,389,700 thousand USD to over 12,551,000 thousand USD. After peaking in early 2019, equity exhibited a fluctuating downward trend, with significant declines observed in 2022, ending at approximately 8,389,500 thousand USD in November 2022. This suggests possible equity reduction due to revaluations, dividends, or losses impacting retained earnings or other equity components during the later periods.
- Equity Turnover Ratio
- The equity turnover ratio, which measures sales generated per unit of shareholders' equity, showed a declining trend from 1 in May 2017 down to a low of 0.63 by February 2021. This decline coincides with the period when equity was increasing, and sales were somewhat volatile, leading to reduced efficiency in equity use. From mid-2021 onward, the ratio reversed trend and increased, surpassing previous levels to reach 1.14 by November 2022. This improvement indicates enhanced utilization of equity to generate sales, possibly driven by the combination of stabilizing or decreasing equity and increasing sales figures during this period.
- Overall Insights
- The company experienced periods of growth and contraction in net sales, with a broad upward trend in recent periods culminating in record sales in mid-2022. The total equity increased significantly through early 2019 but decreased in recent quarters, potentially impacting financial leverage and capital structure. The equity turnover ratio's initial decline followed by a marked recovery highlights shifting operational efficiency and capital utilization over time. This suggests management has improved the effectiveness of equity deployment in the latter periods despite fluctuations in absolute equity levels.