Constellation Brands Inc Class A (STZ)

Cash ratio

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Cash and cash equivalents	US$ in thousands	68,100	73,700	64,600	73,800	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
Short-term investments	US$ in thousands	—	—	0	—	—	—	—	—	-93,200	-95,000	-91,800	-172,300	—	—	2,819,000	2,656,000	—	2,959,000	—	—
Total current liabilities	US$ in thousands	4,035,200	3,289,000	2,913,800	3,122,200	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
Cash ratio		0.02	0.02	0.02	0.02	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

February 28, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($68,100K + $—K) ÷ $4,035,200K
= 0.02

The cash ratio of Constellation Brands Inc Class A has displayed fluctuating trends over the period covered in the data. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 0.17 as of May 31, 2020, indicating that the company had $0.17 in cash and cash equivalents for every $1 of current liabilities.

Subsequently, the cash ratio decreased to 0.11 by August 31, 2020, before experiencing a significant improvement to 1.52 by November 30, 2020. This surge in the cash ratio suggests that Constellation Brands Inc Class A had substantially more liquid assets available to meet its short-term obligations.

However, the ratio then declined to 0.36 by February 28, 2021, and subsequently increased to 1.53 by May 31, 2021, and 1.34 by August 31, 2021. These higher ratios indicate improved liquidity positions for the company during these periods.

Thereafter, the cash ratio demonstrated volatility, dropping to 0.16 by November 30, 2021, and experiencing further declines in subsequent periods. By February 28, 2022, the ratio fell to 0.07, followed by negative values in the following period, May 31, 2022. This negative cash ratio suggests that the company's cash and cash equivalents were insufficient to cover its short-term liabilities during that period.

The company managed to improve its cash ratio to 0.06 by May 31, 2023, which was sustained at similar levels in the subsequent periods. The consistent ratios around 0.03-0.05 from August 31, 2023, to February 28, 2025, indicate that Constellation Brands Inc Class A maintained adequate liquidity to cover its short-term obligations during this period, albeit at lower levels compared to the highs seen in 2020 and 2021.

Overall, fluctuations in the cash ratio reflect variations in Constellation Brands Inc Class A's cash and cash equivalents relative to its short-term liabilities, highlighting the company's liquidity position over the specified timeframe.