Constellation Brands Inc Class A (STZ)

Cash ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Cash and cash equivalents	US$ in thousands	152,400	133,500	199,400	460,600	81,400
Short-term investments	US$ in thousands	—	-93,200	—	—	3,093,000
Total current liabilities	US$ in thousands	3,141,700	2,968,300	2,698,800	1,269,100	2,311,800
Cash ratio		0.05	0.01	0.07	0.36	1.37

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($152,400K + $—K) ÷ $3,141,700K
= 0.05

The cash ratio of Constellation Brands Inc Class A has fluctuated over the past five years. In the most recent fiscal year ending February 29, 2024, the cash ratio stands at 0.05, indicating that the company had $0.05 in cash and cash equivalents for every $1 of current liabilities. This represents a slight improvement from the previous year's cash ratio of 0.01.

However, compared to two years ago in February 28, 2022, when the cash ratio was 0.07, and three years ago in February 28, 2021, when the ratio was 0.36, the company's liquidity position has weakened. The significant drop in the cash ratio from 2021 to 2022 suggests a potential change in the company's cash management or current liabilities structure.

Furthermore, the cash ratio was notably higher in February 29, 2020, at 1.37, indicating a strong liquidity position at that time. It is essential for investors and stakeholders to monitor Constellation Brands Inc Class A's cash ratio over time to assess its ability to meet short-term obligations and manage liquidity effectively.