Constellation Brands Inc Class A (STZ)

Quick 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	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
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
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

November 30, 2024 calculation

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

The quick ratio of Constellation Brands Inc Class A provides insights into the company's ability to meet its short-term obligations with its most liquid assets. Analyzing the trend of the quick ratio over the reported periods reveals fluctuations in the company's liquidity position.

In February 2020, the quick ratio stood at a healthy 1.37, indicating that Constellation Brands had $1.37 in liquid assets available to cover each dollar of current liabilities. However, by May 2020, the ratio dropped significantly to 0.17, suggesting a potential liquidity crunch. This low ratio persisted in August 2020 at 0.11, raising concerns about the company's ability to meet short-term obligations.

The quick ratio improved notably in the following quarters, reaching 1.52 in November 2020, signaling stronger liquidity. The ratio dipped slightly to 0.36 by February 2021 but then surged to 1.53 by May 2021, indicating a substantial improvement in liquidity position.

Subsequently, in August 2021 and November 2021, the quick ratio remained relatively stable at 1.34 and 0.16, respectively. However, a significant decline was observed in February 2022, where the ratio dropped to 0.07, potentially indicating a decrease in liquid assets relative to current liabilities.

The quick ratio continued to fluctuate throughout the reporting periods, showing a mix of improvements and declines. As of the last reported period in November 2024, the quick ratio stood at 0.02, suggesting a lower level of liquidity compared to some previous periods.

Overall, the analysis of Constellation Brands Inc Class A quick ratio highlights fluctuations in the company's short-term liquidity position, emphasizing the importance of continuously monitoring and managing liquidity to ensure the company can meet its financial obligations effectively.