Constellation Brands(Stz) Financials: Return On Assets Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on assets

This chart shows the historical trend of return on assets for STZ compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2022', STZ's return on assets was -0.2%, representing returns generated from total assets. Industry average for Beverages (Production/Distribution) in '2022' stood at -13.7%.
• In '2023', STZ's return on assets was -0.3%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Beverages (Production/Distribution) in '2023' stood at -17.9%. Industry average declined by 4.2% from previous year.
• In '2024', STZ's return on assets was 6.9%, representing returns generated from total assets. The increase since '2023' reflects strengthening financial performance. Industry average for Beverages (Production/Distribution) in '2024' stood at -7.6%. Industry average increased by 10.3% compared to previous year.
• In '2025', STZ's return on assets was -0.3%, representing returns generated from total assets. The decline from '2024' may indicate some operational or financial challenges. Industry average for Beverages (Production/Distribution) in '2025' stood at -0.3%. Industry average increased by 7.3% compared to previous year.
Overall, STZ's return on assets has been volatile but generally stable over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.