Constellation Brands (Constellation Brands) Interest Coverage

: 6.15 (As of Feb. 2024)

View and export this data going back to 1986. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Constellation Brands's Operating Income for the three months ended in Feb. 2024 was $629 Mil. Constellation Brands's Interest Expense for the three months ended in Feb. 2024 was $-102 Mil. Constellation Brands's interest coverage for the quarter that ended in Feb. 2024 was 6.15. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Constellation Brands's Interest Coverage or its related term are showing as below:

STZ' s Interest Coverage Range Over the Past 10 Years
Min: 4.44 Med: 6.72 Max: 8.41
Current: 7.28

STZ's Interest Coverage is ranked worse than
55.63% of 160 companies
in the Beverages - Alcoholic industry
Industry Median: 8.78 vs STZ: 7.28

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Constellation Brands Interest Coverage Historical Data

The historical data trend for Constellation Brands's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Constellation Brands Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Interest Coverage

5.90

7.24

8.41

7.13

7.28

Constellation Brands Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage																3.98	6.47	8.85	7.65	6.15

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Constellation Brands's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Constellation Brands's Interest Coverage falls into.

Constellation Brands Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Constellation Brands's Interest Coverage for the fiscal year that ended in Feb. 2024 is calculated as

Here, for the fiscal year that ended in Feb. 2024, Constellation Brands's Interest Expense was $-435 Mil. Its Operating Income was $3,170 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,681 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2024 )	/	Interest Expense (A: Feb. 2024 )
	=	-1	*	3169.7	/	-435.4
	=	7.28

Constellation Brands's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Constellation Brands's Interest Expense was $-102 Mil. Its Operating Income was $629 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,681 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2024 )	/	Interest Expense (Q: Feb. 2024 )
	=	-1	*	629.4	/	-102.4
	=	6.15

The higher the ratio, the stronger the company's Financial Strength is.

Constellation Brands (NYSE:STZ) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Constellation Brands Interest Coverage Related Terms

Thank you for viewing the detailed overview of Constellation Brands's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Constellation Brands (Constellation Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Constellation Brands Inc (NYSE:STZ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

STZ:Mexico CB1A:Germany STZB34:Brazil STZ:Austria

Address

207 High Point Drive, Building 100, Victor, New York, NY, USA, 14564

Website

https://www.cbrands.com

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.

Executives

Family Foundation Sands	other: Member of 10% owner group	C/O WILDSTAR PARTNERS LLC, 110 E ATLANTIC AVE, STE. 200, DELRAY BEACH FL 33444
Ernesto M Hernandez	director	C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
James O. Bourdeau	officer: EVP & Gen. Counsel	C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Daniel J Mccarthy	director	FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Robert Lee Hanson	officer: EVP & Pres. Wine and Spirits	C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
William A Newlands	director, officer: President & CEO	C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DR., BUILDING 100, VICTOR NY 14564
Kaneenat Kristann Carey	officer: EVP & Chief HR Officer	207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Garth Hankinson	officer: EVP & CFO	C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
William T Giles	director	123 S. FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
Luca Zaramella	director	C/O MONDELEZ INTERNATIONAL, INC., THREE PARKWAY NORTH, DEERFIELD IL 60015
Rht 2015 Business Holdings Lp	other: Member of 10% owner group	110 E ATLANTIC AVE, STE. 200, C/O WILDSTAR PARTNERS LLC, DELRAY BEACH FL 33444
Rss Business Holdings Lp	10 percent owner	C/O WILDSTAR PARTNERS LLC, 110 E ATLANTIC AVE, STE. 200, DELRAY BEACH FL 33444
Rct 2015 Business Holdings Lp	other: Member of 10% owner group	110 E ATLANTIC AVE, STE. 200, C/O WILDSTAR PARTNERS LLC, DELRAY BEACH FL 33444
Wildstar Partners Llc	10 percent owner	110 E ATLANTIC AVE, STE. 200, DELRAY BEACH FL 33444
Rss 2015 Business Holdings Lp	other: Member of 10% owner group	110 E ATLANTIC AVE, STE. 200, C/O WILDSTAR PARTNERS LLC, DELRAY BEACH FL 33444