Constellation Brands Inc Class A (STZ)

Cash ratio

		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	Feb 29, 2020
Cash and cash equivalents	US$ in thousands	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	81,400
Short-term investments	US$ in thousands	—	0	—	—	—	—	—	-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	3,289,000	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	2,311,800
Cash ratio		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	1.37

November 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($73,700K + $—K) ÷ $3,289,000K
= 0.02

The cash ratio of Constellation Brands Inc Class A reflects the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The cash ratio fluctuated over the years, indicating variability in the company's liquidity position. It stood at 1.37 on February 29, 2020, which suggested that the company had enough cash to cover its current liabilities at that point in time. However, the ratio dropped significantly to 0.17 on May 31, 2020, and continued to decrease to 0.11 on August 31, 2020, indicating potential liquidity challenges.

There was a notable improvement in the cash ratio to 1.52 on November 30, 2020, suggesting that the company had strengthened its liquidity position. The ratio then decreased to 0.36 on February 28, 2021, before rising to 1.53 on May 31, 2021, and 1.34 on August 31, 2021, indicating improved liquidity.

However, the cash ratio declined to 0.16 on November 30, 2021, and continued to decrease to 0.07 on February 28, 2022. The ratio further dropped to -0.03 on May 31, 2022, which may raise concerns about the company's ability to cover its short-term obligations with its available cash.

There were slight improvements in the cash ratio in the following periods, reaching 0.06 on May 31, 2023, and 0.05 on February 29, 2024. These ratios indicate that the company has been able to increase its cash holdings relative to its short-term liabilities, although the ratio remains modest.

Overall, the cash ratio trend of Constellation Brands Inc Class A shows fluctuations in liquidity levels over time, with periods of strengthening and weakening liquidity positions. It is essential for investors and stakeholders to monitor these changes to assess the company's ability to meet its short-term obligations using its available cash resources.