Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Constellation Brands Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Constellation Brands Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Constellation Brands Inc. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Constellation Brands Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Constellation Brands Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Constellation Brands Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Constellation Brands Inc. number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Constellation Brands Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Constellation Brands Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Constellation Brands Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Constellation Brands Inc., inventory turnover 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) | |||||||
| Cost of product sold | 4,113,400) | 4,148,900) | 4,191,600) | 4,035,700) | 3,767,800) | 3,802,100) | |
| Inventories | 1,573,200) | 1,291,100) | 1,373,600) | 2,130,400) | 2,084,000) | 1,955,100) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.61 | 3.21 | 3.05 | 1.89 | 1.81 | 1.94 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Altria Group Inc. | 5.46 | 5.96 | 3.98 | 3.09 | — | — | |
| Coca-Cola Co. | 4.25 | 4.50 | 4.11 | 4.33 | — | — | |
| Mondelēz International Inc. | 5.97 | 6.45 | 6.10 | 6.10 | — | — | |
| PepsiCo Inc. | 7.77 | 8.53 | 7.62 | 9.03 | — | — | |
| Inventory Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 6.08 | 6.60 | 5.74 | 5.83 | — | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | 7.60 | 8.82 | 8.40 | 8.24 | — | — | |
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
Inventory turnover = Cost of product sold ÷ Inventories
= 4,113,400 ÷ 1,573,200 = 2.61
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Constellation Brands Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables Turnover
Constellation Brands Inc., receivables turnover 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) | |
| Accounts receivable | 899,000) | 785,300) | 864,800) | 846,900) | 776,200) | 737,000) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 9.81 | 10.97 | 9.65 | 9.58 | 9.77 | 9.95 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Altria Group Inc. | 522.83 | 553.47 | 190.90 | 165.20 | — | — | |
| Coca-Cola Co. | 12.33 | 11.01 | 10.50 | 9.38 | — | — | |
| Mondelēz International Inc. | 10.20 | 12.29 | 11.57 | 11.69 | — | — | |
| PepsiCo Inc. | 8.50 | 9.16 | 8.37 | 8.59 | — | — | |
| Receivables Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 11.08 | 11.86 | 11.17 | 10.98 | — | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | 34.89 | 38.54 | 37.27 | 34.73 | — | — | |
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
Receivables turnover = Net sales ÷ Accounts receivable
= 8,820,700 ÷ 899,000 = 9.81
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Constellation Brands Inc. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Payables Turnover
Constellation Brands Inc., payables turnover 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) | |||||||
| Cost of product sold | 4,113,400) | 4,148,900) | 4,191,600) | 4,035,700) | 3,767,800) | 3,802,100) | |
| Accounts payable | 899,200) | 460,000) | 557,600) | 616,700) | 592,200) | 559,800) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 4.57 | 9.02 | 7.52 | 6.54 | 6.36 | 6.79 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Altria Group Inc. | 11.67 | 15.86 | 20.57 | 21.80 | — | — | |
| Coca-Cola Co. | 3.39 | 3.34 | 3.82 | 3.84 | — | — | |
| Mondelēz International Inc. | 2.67 | 2.60 | 2.60 | 2.65 | — | — | |
| PepsiCo Inc. | 3.78 | 3.77 | 3.59 | 3.76 | — | — | |
| Payables Turnover, Sector | |||||||
| Food, Beverage & Tobacco | 3.53 | 3.56 | 3.65 | 3.74 | — | — | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | 6.51 | 6.79 | 6.85 | 6.89 | — | — | |
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
Payables turnover = Cost of product sold ÷ Accounts payable
= 4,113,400 ÷ 899,200 = 4.57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Constellation Brands Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Working Capital Turnover
Constellation Brands Inc., working capital turnover 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) | |||||||
| Current assets | 3,329,700) | 3,044,500) | 3,484,100) | 3,684,000) | 3,474,000) | 3,230,000) | |
| Less: Current liabilities | 2,698,800) | 1,269,100) | 2,311,800) | 3,163,800) | 1,944,700) | 2,697,600) | |
| Working capital | 630,900) | 1,775,400) | 1,172,300) | 520,200) | 1,529,300) | 532,400) | |
| Net sales | 8,820,700) | 8,614,900) | 8,343,500) | 8,116,000) | 7,585,000) | 7,331,500) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 13.98 | 4.85 | 7.12 | 15.60 | 4.96 | 13.77 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Altria Group Inc. | — | — | — | — | — | — | |
| Coca-Cola Co. | 15.00 | 14.90 | 7.12 | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Food, Beverage & Tobacco | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 8,820,700 ÷ 630,900 = 13.98
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Constellation Brands Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Inventory Processing Period
Constellation Brands Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 2.61 | 3.21 | 3.05 | 1.89 | 1.81 | 1.94 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 140 | 114 | 120 | 193 | 202 | 188 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Altria Group Inc. | 67 | 61 | 92 | 118 | — | — | |
| Coca-Cola Co. | 86 | 81 | 89 | 84 | — | — | |
| Mondelēz International Inc. | 61 | 57 | 60 | 60 | — | — | |
| PepsiCo Inc. | 47 | 43 | 48 | 40 | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Food, Beverage & Tobacco | 60 | 55 | 64 | 63 | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | 48 | 41 | 43 | 44 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.61 = 140
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Constellation Brands Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
Constellation Brands Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 9.81 | 10.97 | 9.65 | 9.58 | 9.77 | 9.95 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 37 | 33 | 38 | 38 | 37 | 37 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Altria Group Inc. | 1 | 1 | 2 | 2 | — | — | |
| Coca-Cola Co. | 30 | 33 | 35 | 39 | — | — | |
| Mondelēz International Inc. | 36 | 30 | 32 | 31 | — | — | |
| PepsiCo Inc. | 43 | 40 | 44 | 43 | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Food, Beverage & Tobacco | 33 | 31 | 33 | 33 | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | 10 | 9 | 10 | 11 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.81 = 37
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Constellation Brands Inc. number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Operating Cycle
Constellation Brands Inc., operating cycle calculation, comparison to benchmarks
No. days
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 140 | 114 | 120 | 193 | 202 | 188 | |
| Average receivable collection period | 37 | 33 | 38 | 38 | 37 | 37 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 177 | 147 | 158 | 231 | 239 | 225 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Altria Group Inc. | 68 | 62 | 94 | 120 | — | — | |
| Coca-Cola Co. | 116 | 114 | 124 | 123 | — | — | |
| Mondelēz International Inc. | 97 | 87 | 92 | 91 | — | — | |
| PepsiCo Inc. | 90 | 83 | 92 | 83 | — | — | |
| Operating Cycle, Sector | |||||||
| Food, Beverage & Tobacco | 93 | 86 | 97 | 96 | — | — | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | 58 | 50 | 53 | 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 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 140 + 37 = 177
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Constellation Brands Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Constellation Brands Inc., average payables payment period 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 | |||||||
| Payables turnover | 4.57 | 9.02 | 7.52 | 6.54 | 6.36 | 6.79 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 80 | 40 | 49 | 56 | 57 | 54 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Altria Group Inc. | 31 | 23 | 18 | 17 | — | — | |
| Coca-Cola Co. | 108 | 109 | 96 | 95 | — | — | |
| Mondelēz International Inc. | 137 | 141 | 140 | 138 | — | — | |
| PepsiCo Inc. | 97 | 97 | 102 | 97 | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Food, Beverage & Tobacco | 103 | 102 | 100 | 97 | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | 56 | 54 | 53 | 53 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.57 = 80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Constellation Brands Inc. number of days of payables outstanding decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Cash Conversion Cycle
Constellation Brands Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | Feb 28, 2019 | Feb 28, 2018 | Feb 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 140 | 114 | 120 | 193 | 202 | 188 | |
| Average receivable collection period | 37 | 33 | 38 | 38 | 37 | 37 | |
| Average payables payment period | 80 | 40 | 49 | 56 | 57 | 54 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 97 | 107 | 109 | 175 | 182 | 171 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Altria Group Inc. | 37 | 39 | 76 | 103 | — | — | |
| Coca-Cola Co. | 8 | 5 | 28 | 28 | — | — | |
| Mondelēz International Inc. | -40 | -54 | -48 | -47 | — | — | |
| PepsiCo Inc. | -7 | -14 | -10 | -14 | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Food, Beverage & Tobacco | -10 | -16 | -3 | -1 | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | 2 | -4 | 0 | 2 | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 140 + 37 – 80 = 97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Constellation Brands Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |