Constellation Brands Inc Class A (STZ)

Current 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
Total current assets	US$ in thousands	3,716,400	3,629,500	3,646,800	3,828,400	3,729,500	3,551,400	3,434,300	3,652,600	3,496,100	3,525,900	3,530,200	3,302,200	3,329,700	3,376,600	2,943,700	3,313,100	3,044,500	3,447,100	3,537,200	3,396,200
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
Current ratio		0.92	1.10	1.25	1.23	1.19	1.05	1.20	1.14	1.18	1.29	1.41	1.40	1.23	1.50	1.35	1.61	2.40	1.69	1.85	1.94

February 28, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,716,400K ÷ $4,035,200K
= 0.92

The current ratio of Constellation Brands Inc Class A has exhibited fluctuations over the specified time period, ranging from a high of 2.40 to a low of 0.92. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

Initially, the current ratio showed an increasing trend, reaching its peak at 2.40 on February 28, 2021, indicating strong liquidity and the ability to cover its current liabilities comfortably. However, the ratio started declining thereafter, dropping to 1.05 on November 30, 2023, reflecting a potential strain on the company's short-term financial health.

It is noteworthy that a current ratio above 1.0 generally suggests that the company possesses more current assets than current liabilities. However, a decreasing trend in the ratio over time may indicate challenges in managing current liabilities or a reduction in current assets.

Given the latest ratio of 0.92 on February 28, 2025, investors and stakeholders may need to assess the company's ability to pay off its short-term obligations, as the current assets may not be sufficient to cover its current liabilities. This calls for further scrutiny and monitoring of Constellation Brands Inc Class A's liquidity position in the coming periods.