What is Constellation Brands Return-on-Tangible-Asset?
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Constellation Brands's annualizedNet Income for the quarter that ended in Feb. 2024 was $1,570 Mil. Constellation Brands's average total tangible assets for the quarter that ended in Feb. 2024 was $14,663 Mil. Therefore, Constellation Brands's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2024 was 10.70%.
The historical rank and industry rank for Constellation Brands's Return-on-Tangible-Asset or its related term are showing as below:
STZ'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.49 Med: 13.87 Max: 28
Current: 12.06
During the past 13 years, Constellation Brands's highest Return-on-Tangible-Asset was 28.00%. The lowest was -0.49%. And the median was 13.87%.
STZ's Return-on-Tangible-Asset is ranked better than 81.78% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 4.26
vs STZ: 12.06
Constellation Brands Return-on-Tangible-Asset Historical Data
The historical data trend for Constellation Brands's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Constellation Brands's Return-on-Tangible-Asset
For the Beverages - Wineries & Distilleries subindustry, Constellation Brands's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Constellation Brands's Return-on-Tangible-Asset Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2024) net income data.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Constellation Brands Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Constellation Brands's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Constellation Brands (Constellation Brands) Business Description
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the U.S., generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company continue to prune assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the U.S., the firm has small revenue exposure to international markets. Constellation owns a 36% stake in no-moat Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
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