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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- 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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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), 10-K (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-Q (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31).
The financial ratios reveal several trends over the analyzed periods. The net fixed asset turnover ratio, starting from a level around 1.86 in early 2017, generally exhibits a gradual decline over time, dipping to approximately 1.46 by late 2022. Although the ratio fluctuates modestly within this range, the overall trend reflects a slight decrease in the efficiency of fixed asset utilization to generate sales.
The total asset turnover ratio also displays notable changes. Initial values around 0.39 in early 2017 decrease steadily to a low near 0.28 by early 2019. This decline indicates reduced efficiency in the use of total assets to produce revenue. However, from 2019 onwards, there is a gradual recovery, with the ratio rebounding to 0.39 by late 2022, suggesting an improvement in asset utilization efficiency over the more recent periods.
Equity turnover shows a more pronounced volatility over the timeframe. Beginning close to 1.06 in early 2017, the ratio declines sharply to a low of approximately 0.63 by early 2021, indicating diminishing efficiency in employing shareholders' equity to generate sales. After this trough, the ratio experiences a strong recovery, reaching a value above 1.0 by late 2022. This rebound suggests that the company leveraged equity more effectively in the later periods, potentially reflecting strategic changes or improvements in operational performance.
- Net Fixed Asset Turnover
- Shows a moderate declining trend from around 1.86 to 1.46 over six years, implying slightly reduced effectiveness in generating sales from fixed assets.
- Total Asset Turnover
- Experiences a decrease from approximately 0.39 to 0.28 between 2017 and 2019, followed by a gradual recovery back to 0.39 by late 2022, indicating fluctuations in overall asset utilization efficiency.
- Equity Turnover
- Displays significant volatility, falling from about 1.06 to a low near 0.63 by early 2021 before rising above 1.0 toward the end of the period, reflecting variable effectiveness in using equity to drive sales.
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 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-Q (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31).
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 net sales of the company exhibit a fluctuating pattern over the observed periods. Beginning at approximately 1,871,800 thousand US dollars in May 2016, sales show an upward trend peaking around 2,343,000 thousand US dollars in August 2019. Following this peak, there is a noticeable decline during early 2020, with sales falling to approximately 1,953,000 thousand US dollars by May 2021. However, net sales recover thereafter, reaching a high of approximately 2,655,100 thousand US dollars in August 2022 before slightly decreasing to 2,436,500 thousand US dollars by November 2022.
Regarding property, plant, and equipment, there is a general upward trajectory throughout the period analyzed. Starting from 3,507,200 thousand US dollars in May 2016, the value steadily increases, surpassing 6,000,000 thousand US dollars by May 2022 and reaching around 6,523,800 thousand US dollars by November 2022. This consistent growth suggests ongoing capital investment in fixed assets.
The net fixed asset turnover ratio, introduced from February 2017 onwards, shows a gradual decline over time. Initially, the ratio starts at 1.86 in February 2017, then declines with some minor fluctuations to levels around 1.46 to 1.51 in the latter periods, specifically from May 2022 through November 2022. This downward trend indicates that each dollar invested in fixed assets generates slightly less in sales over time.
- Net Sales Trend
- Fluctuating with an initial increase until 2019, a drop during early 2020, followed by a recovery and subsequent peak in mid-2022 before a slight decrease.
- Property, Plant, and Equipment
- Consistent and steady increase over the entire period, reflecting significant capital expenditures and asset growth.
- Net Fixed Asset Turnover Ratio
- A declining trend from 1.86 in early 2017 to approximately 1.46-1.51 in late 2022, signaling a reduction in sales efficiency relative to fixed asset investment.
Overall, the data reveal that while the company has invested increasingly in fixed assets, the efficiency of utilizing these assets to generate sales has diminished over the years. The sales figures, subject to external market conditions, show resilience with recovery after downturns. Careful attention to optimizing asset utilization may be required to enhance returns on investment.
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 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-Q (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31).
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 analysis of the quarterly financial data reveals several key trends in the company's operational and asset management performance over the observed periods.
- Net Sales
-
Net sales exhibit notable fluctuations across the quarters, with a general upward trajectory over the long term. Initially, sales increased from approximately 1.87 billion USD in May 2016 to 2.08 billion USD by August 2017. Afterward, there are intermittent declines and recoveries, with periods such as February 2018 and August 2018 showing decreases followed by rebounds to higher levels, reaching peaks above 2.6 billion USD around August and November 2022. This pattern suggests seasonality and cyclical demand, as well as an underlying growth trend.
- Total Assets
-
Total assets steadily increased from 17.63 billion USD in May 2016 to a peak near 29.23 billion USD by February 2019. Thereafter, a downward adjustment is evident, with assets decreasing to approximately 24.46 billion USD by November 2022. The overall asset base remains considerably higher than the initial levels, although the post-2019 decline indicates possible divestitures, asset impairments, or changes in investment strategies.
- Total Asset Turnover Ratio
-
The total asset turnover ratio, which measures efficiency in utilizing assets to generate sales, shows a declining trend from 0.39 in early 2017 down to a low near 0.28 in late 2018 and early 2019. Following this trough, the ratio gradually recovers, reaching again approximately 0.39 by late 2022. This movement implies that the company initially became less efficient in employing its expanded asset base but subsequently improved operational efficiency, possibly through better asset management or enhanced revenue generation without proportional asset growth.
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 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-Q (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31).
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.
The analysis of the financial data over the periods from May 2016 through November 2022 reveals notable trends across net sales, total Constellation Brands Inc. (CBI) stockholders’ equity, and equity turnover ratios.
- Net Sales
- Net sales exhibit a generally positive trajectory with fluctuations across quarters. From May 2016 starting at approximately 1.87 billion USD, there is an observable growth reaching a peak around August 2022 at approximately 2.66 billion USD. Noteworthy is the cyclical downward movement observed periodically, such as decreases in net sales around November to February quarters in various years. Despite these periodic dips, the overall trend demonstrates resilience and expansion in revenue, with the highest values recorded in 2022, indicating strong market performance in the recent periods analyzed.
- Total CBI Stockholders’ Equity
- Stockholders' equity shows a rising trend from May 2016 until early 2019, increasing from about 6.8 billion USD to a peak exceeding 12.5 billion USD by February 2019. After this period, equity values fluctuate, with a general downward shift starting mid-2019 and continuing through 2022. By November 2022, total stockholders’ equity declines to approximately 8.4 billion USD, which is lower than the early periods evaluated. This pattern may reflect company investments, share repurchases, dividends, or other capital adjustments impacting equity levels during these years.
- Equity Turnover Ratio
- The equity turnover ratio, representing net sales generated per unit of shareholder equity, begins to be reported from February 2017. It starts slightly above 1.0 and generally trends downward over time, decreasing to a low around 0.63 in mid-2021. Subsequently, it recovers back above 1.0 by late 2022. This decline followed by recovery suggests periods where sales growth did not keep pace with equity growth, and later a rebalancing where sales performance improved relative to equity. The recent upward movement in equity turnover indicates enhanced efficiency in using equity to generate sales.
In summary, the company experienced steady growth in net sales with cyclical variations, a peak and subsequent contraction in stockholders’ equity, and a fluctuating but recent improvement in equity turnover ratios. These financial indicators collectively suggest a phase of expansion followed by capital restructuring or equity adjustments, and a return towards higher operational efficiency in the latest periods.