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GuruFocus has detected 4 Warning Signs with Constellation Brands Inc $STZ.
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Constellation Brands Inc (NYSE:STZ)
Days Inventory
197.49 (As of Nov. 2016)

Constellation Brands Inc's average inventory for the three months ended in Nov. 2016 was $1,989 Mil. Constellation Brands Inc's cost of goods sold for the three months ended in Nov. 2016 was $919 Mil. Hence, Constellation Brands Inc's days inventory for the three months ended in Nov. 2016 was 197.49.

STZ' s Days Inventory Range Over the Past 10 Years
Min: 180.52   Max: 314.5
Current: 184.63

180.52
314.5

During the past 13 years, Constellation Brands Inc's highest Days Inventory was 314.50. The lowest was 180.52. And the median was 289.28.

STZ's Days Inventory is ranked lower than
70% of the 189 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 95.13 vs. STZ: 184.63 )

Constellation Brands Inc's days inventory increased from Nov. 2015 (184.20) to Nov. 2016 (197.49). It might indicate that Constellation Brands Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Constellation Brands Inc's days sales of inventory (DSI) for the three months ended in Nov. 2016 was 100.25.

Inventory turnover measures how fast the company turns over its inventory within a year. Constellation Brands Inc's inventory turnover for the three months ended in Nov. 2016 was 0.46.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Constellation Brands Inc's inventory to revenue ratio for the three months ended in Nov. 2016 was 1.10.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Constellation Brands Inc's Days Inventory for the fiscal year that ended in Feb. 2016 is calculated as

Days Inventory (A: Feb. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Feb. 2015 ) + Inventory (A: Feb. 2016 )) / 2 ) / COGS (A: Feb. 2016 )*Days in Period
=( (1827.2 + 1851.6) / 2 ) / 3606.1*365
=1839.4 / 3606.1*365
=186.18

Constellation Brands Inc's Days Inventory for the quarter that ended in Nov. 2016 is calculated as:

Days Inventory (Q: Nov. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Aug. 2016 ) + Inventory (Q: Nov. 2016 )) / 2 ) / COGS (Q: Nov. 2016 )*Days in Period
=( (1855.2 + 2123.1) / 2 ) / 919.1*365 / 4
=1989.15 / 919.1*365 / 4
=197.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Constellation Brands Inc's Days Sales of Inventory for the three months ended in Nov. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1989.15/1810.5*365 / 4
=100.25

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Constellation Brands Inc's Inventory Turnover for the three months ended in Nov. 2016 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Constellation Brands Inc's Inventory to Revenue for the three months ended in Nov. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1989.15 / 1810.5
=1.10

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Constellation Brands Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DaysInventory 180.52302.34301.70304.87276.85314.50308.75204.63188.93186.18

Constellation Brands Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
DaysInventory 174.28187.30225.80184.24169.62184.20201.23173.67163.65197.49
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