Constellation Brands Inc Class A (STZ)

Cash ratio

		Feb 28, 2025	Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021
Cash and cash equivalents	US$ in thousands	—	152,400	133,500	199,400	460,600
Short-term investments	US$ in thousands	—	—	-93,200	—	—
Total current liabilities	US$ in thousands	—	3,141,700	2,968,300	2,698,800	1,269,100
Cash ratio		—	0.05	0.01	0.07	0.36

February 28, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $—K
= —

The cash ratio of Constellation Brands Inc Class A has shown a fluctuating trend over the past five years. As of February 28, 2021, the cash ratio was 0.36, indicating that the company had $0.36 in cash and cash equivalents for every $1 of current liabilities. However, this ratio decreased significantly to 0.07 as of February 28, 2022, suggesting a lower liquidity position compared to the previous year.

By February 28, 2023, the cash ratio further declined to 0.01, implying a substantial decrease in the company's ability to cover its short-term obligations with cash reserves alone. This could potentially signal financial stress or inefficient cash management practices.

The cash ratio improved slightly to 0.05 by February 29, 2024, but it remained relatively low, indicating that Constellation Brands Inc Class A may still face liquidity challenges. Unfortunately, there is no data available for February 28, 2025, which hinders a complete assessment of the company's current liquidity position.

In summary, the cash ratio of Constellation Brands Inc Class A has experienced significant fluctuations in recent years, raising concerns about the company's ability to meet its short-term financial obligations solely with available cash resources. Further monitoring of liquidity management strategies would be advisable to ensure financial stability and meet obligations effectively.