Constellation Brands Inc Class A (STZ)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.51 |
| Quick 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 |
| 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 |
The current ratio of Constellation Brands Inc Class A has exhibited fluctuations over the periods analyzed, ranging from a low of 1.05 to a high of 2.40. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations. However, a decreasing trend in the current ratio may suggest potential liquidity challenges.
On the other hand, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows variability, with values ranging from -0.03 to 1.53. A quick ratio above 1 is generally considered healthy, indicating the company's ability to meet its short-term liabilities without relying on inventory sales.
The cash ratio, which is the most stringent liquidity ratio as it only includes cash and cash equivalents, also varied between -0.03 and 1.53. A cash ratio of at least 1 is typically preferred as it suggests the company can cover its short-term liabilities solely with cash on hand.
Overall, while the company's liquidity ratios have shown fluctuations over the periods analyzed, it is essential to monitor these ratios consistently to assess Constellation Brands Inc Class A's ability to meet its short-term obligations effectively.
See also:
Constellation Brands Inc Class A Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 155.87 | 152.96 | 155.66 | 152.62 | 148.67 | 135.40 | 147.39 | 147.97 | 142.46 | 133.85 | 140.13 | 139.60 | 135.13 | 116.98 | 123.21 | 113.58 | 121.31 | 121.68 | 118.69 | 119.61 |
The cash conversion cycle of Constellation Brands Inc Class A provides insight into the efficiency of the company's cash management and liquidity. Over the period from February 29, 2020, to November 30, 2024, the cash conversion cycle has fluctuated, reflecting changes in the company's operating cycle.
On average, the cash conversion cycle has been around 130 days, indicating that Constellation Brands takes approximately 130 days on average to convert its investments in inventory and other resources into cash from sales. A shorter cash conversion cycle is generally favorable as it suggests the company is able to more quickly recover its costs and generate cash inflows.
The trend analysis reveals some variability in the cash conversion cycle over the period, with peaks observed in February 28, 2023 (147.97 days), and November 30, 2024 (155.87 days). These longer cycles may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
On the other hand, the lowest points in the cycle were observed in February 28, 2021 (113.58 days) and August 31, 2021 (116.98 days), suggesting improved efficiency in working capital management during those periods.
Overall, Constellation Brands Inc Class A should continue monitoring and improving its cash conversion cycle to ensure effective cash flow management, optimize working capital, and enhance overall financial performance.