Constellation Brands Inc Class A (STZ)

Quick ratio

		Feb 29, 2024	Feb 28, 2023	Feb 28, 2022	Feb 28, 2021	Feb 29, 2020
Cash	US$ in thousands	152,400	133,500	199,400	460,600	81,400
Short-term investments	US$ in thousands	—	-93,200	—	—	3,093,000
Receivables	US$ in thousands	832,800	901,600	899,000	785,300	864,800
Total current liabilities	US$ in thousands	3,141,700	2,968,300	2,698,800	1,269,100	2,311,800
Quick ratio		0.31	0.32	0.41	0.98	1.75

February 29, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($152,400K + $—K + $832,800K) ÷ $3,141,700K
= 0.31

The quick ratio of Constellation Brands Inc Class A has shown a declining trend over the past five years, decreasing from 1.75 in February 2020 to 0.31 in February 2024. This indicates a decreasing ability of the company to meet its short-term obligations using its most liquid assets.

A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its current quick assets alone. It is important to note that a quick ratio of 0.31 as of February 29, 2024, is significantly below the ideal benchmark of 1.0 or higher, indicating potential liquidity concerns for the company.

Further analysis should be conducted to understand the underlying reasons for the declining quick ratio over the years and to assess the company's overall liquidity position.