Constellation Brands (Constellation Brands) Operating Income : $3,170 Mil (TTM As of Feb. 2024)

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What is Constellation Brands Operating Income?

Constellation Brands's Operating Income for the three months ended in Feb. 2024 was $629 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was $3,170 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Constellation Brands's Operating Income for the three months ended in Feb. 2024 was $629 Mil. Constellation Brands's Revenue for the three months ended in Feb. 2024 was $2,139 Mil. Therefore, Constellation Brands's Operating Margin % for the quarter that ended in Feb. 2024 was 29.42%.

Good Sign:

Constellation Brands Inc operating margin is expanding. Margin expansion is usually a good sign.

Constellation Brands's 5-Year average Growth Rate for Operating Margin % was 1.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Constellation Brands's annualized ROC % for the quarter that ended in Feb. 2024 was 8.81%. Constellation Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 25.38%.

Constellation Brands Operating Income Historical Data

The historical data trend for Constellation Brands's Operating Income 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.

* Premium members only.

Constellation Brands Operating Income Chart

Constellation Brands Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Operating Income

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2,530.10

2,791.10

2,997.60

2,842.90

3,169.70

Constellation Brands Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Operating Income	Get a 7-Day Free Trial															466.70	764.70	978.70	796.90	629.40

Constellation Brands Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,170 Mil.

Constellation Brands (NYSE:STZ) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Constellation Brands's annualized ROC % for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	2517.6 * ( 1 - 17.9% )	/	( (23015	+	23897.6)	/ 2 )
=	2066.9496	/	23456.3
=	8.81 %

where

	Invested Capital		(Q: Nov. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	25057.4	-	1963.7	-	( 78.7	-	max(0, 3379.9	-	3551.4	+	78.7	))
=	23015

	Invested Capital		(Q: Feb. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	25691.7	-	1641.7	-	( 152.4	-	max(0, 3141.7	-	3729.5	+	152.4	))
=	23897.6

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Constellation Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2023		Q: Feb. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2380	/	( ( (7713.5 + max(1509, 0))	+	(8055.2 + max(1475.5, 0)) )	/	2 )
=	2380	/	( ( 9222.5	+	9530.7 )	/	2 )
=	2380	/	9376.6
=	25.38 %

where Working Capital is:

	Working Capital		(Q: Nov. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(897.3	+	1988	+	587.4)	-	(1963.7	+	0	+	0)
=	1509

	Working Capital		(Q: Feb. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(832.8	+	2078.3	+	418.3)	-	(1641.7	+	34.6	+	177.6)
=	1475.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Constellation Brands's Operating Margin % for the quarter that ended in Feb. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	629.4	/	2139.2
	=	29.42 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Constellation Brands Operating Income Related Terms

Thank you for viewing the detailed overview of Constellation Brands's Operating Income 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 » Operating Income

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