Constellation Brands Inc Class A (STZ)

Cash ratio

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Cash and cash equivalents	US$ in thousands	152,400	78,700	83,300	192,500	133,500	185,000	165,100	101,800	199,400	361,300	103,400	503,800	460,600	152,900	204,600	302,800	81,400	93,700	81,300	98,700
Short-term investments	US$ in thousands	—	—	—	—	-93,200	-95,000	-91,800	-172,300	—	—	2,819,000	2,656,000	—	2,959,000	—	—	3,093,000	—	—	—
Total current liabilities	US$ in thousands	3,141,700	3,379,900	2,857,500	3,190,500	2,968,300	2,725,000	2,511,900	2,365,800	2,698,800	2,248,600	2,187,100	2,062,800	1,269,100	2,041,400	1,909,900	1,752,400	2,311,800	2,460,200	2,195,900	2,939,300
Cash ratio		0.05	0.02	0.03	0.06	0.01	0.03	0.03	-0.03	0.07	0.16	1.34	1.53	0.36	1.52	0.11	0.17	1.37	0.04	0.04	0.03

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 varied significantly over the past few quarters.

In the most recent quarter, as of February 29, 2024, the cash ratio was 0.05, indicating that the company had $0.05 of cash and cash equivalents for every $1 of current liabilities. This suggests a relatively weak liquidity position compared to the previous quarter, where the cash ratio was 0.02.

Looking further back, the cash ratio has shown fluctuations, with ratios ranging from negative values to as high as 1.53 in the quarter ending August 31, 2021. The negative cash ratio in the quarter ending August 31, 2022, implies that the company had more current liabilities than cash and cash equivalents on hand.

Overall, the trend in the cash ratio indicates some inconsistencies in Constellation Brands Inc Class A's ability to cover its short-term liabilities with available cash. Investors and analysts may want to further investigate the company's cash management practices and liquidity position to assess its financial stability and ability to meet its short-term obligations.