Constellation Brands Inc Class A (STZ)

Current ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Total current assets	US$ in thousands	3,729,500	3,496,100	3,329,700	3,044,500	3,484,100
Total current liabilities	US$ in thousands	3,141,700	2,968,300	2,698,800	1,269,100	2,311,800
Current ratio		1.19	1.18	1.23	2.40	1.51

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,729,500K ÷ $3,141,700K
= 1.19

The current ratio of Constellation Brands Inc Class A has fluctuated over the past five years, ranging from 1.18 to 2.40. A current ratio of 1.19 as of February 29, 2024, indicates that the company has $1.19 in current assets for every $1 in current liabilities, suggesting a relatively stable liquidity position.

Comparing this to prior years, we observe a slight decrease from the 2023 ratio of 1.18, while the current ratio was notably higher in 2021 and 2020 at 2.40 and 1.51 respectively. A higher current ratio generally implies stronger short-term financial health and ability to cover immediate obligations.

The current ratio is influenced by factors such as cash flow management, inventory levels, and the company's overall financial structure. It is essential for investors and creditors to monitor changes in the current ratio over time to assess the company's liquidity position and short-term solvency.