CONSTELLATION BRANDS, INC.

Capital Structure and Liquidity Constellation Brands has a total debt of $9.69 billion and total equity of $8.08 billion, resulting in a debt-to-equity ratio of 1.27. The company's current ratio is 1.08, indicating a liquidity position that is close to the minimum comfort range. The company has $102.4 million in cash and equivalents, but its net cash is negative after subtracting total debt. The operating cash flow is $2.67 billion, and the free cash flow is $1.79 billion, which suggests the company has the ability to generate robust cash flow. ### Profitability and Returns The company's return on equity (ROE) is 20.87%, and the return on assets (ROA) is 7.7%. These figures indicate that the company is generating strong returns on its equity and assets. The gross profit is $4.71 billion, and the operating income is $2.72 billion, which suggests the company is maintaining leading margins in its beer segment. ### Segments and Geographic Exposure The company operates in three segments: Beer, Wine and Spirits, and Corporate Operations and Other. The Beer segment includes high-end imported beer brands and ABAs, while the Wine and Spirits segment includes higher-end wine brands complemented by certain higher-end spirits brands. The company's geographic exposure is primarily in the United States, with operations in Mexico, New Zealand, and Italy. The company's revenue is concentrated in the United States, with a significant portion of its operations and revenue coming from this region. ### Growth Trajectory The company's revenue for FY2026 is $9.14 billion. The company is focused on growing its high-end imported beer brands, enhancing its results of operations and operating cash flow, and exploring new avenues for growth. The company is also repositioning its wine and spirits portfolio for long-term growth and is committed to improving margins and increasing distribution for key brands. ### Risk Factors The company faces several risk factors, including potential declines in the consumption of products it sells, dependence on sales of its beer brands, competition in its industry, economic and other uncertainties associated with its international operations, and reliance on complex information systems and third-party global networks. The company also faces risks related to cybersecurity and AI, as well as the potential impact of severe weather events or other weather conditions. ### Recent Events The company has recently completed the 2025 Wine Divestitures, which involved the sale and, in certain instances, exclusive license to use the trademarks of a portion of its wine and spirits business. The company has also implemented the 2025 Restructuring Initiative, an enterprise-wide cost savings and restructuring initiative designed to help optimize the performance of its business. The company has also authorized a $4.0 billion share repurchase program, approved by its Board of Directors in April 2025.