Constellation Brands Inc Class A (STZ)

Quick ratio

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Cash	US$ in thousands	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	93,700	81,300	98,700
Short-term investments	US$ in thousands	—	—	—	—	-93,200	-95,000	-91,800	-172,300	—	—	2,819,000	2,656,000	—	2,959,000	—	—	3,093,000	—	—	—
Receivables	US$ in thousands	832,800	897,300	933,200	933,100	901,600	921,000	978,900	879,900	899,000	917,800	972,800	922,800	785,300	915,400	926,300	700,500	864,800	808,300	953,700	788,300
Total current liabilities	US$ in thousands	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	2,460,200	2,195,900	2,939,300
Quick ratio		0.31	0.29	0.36	0.35	0.32	0.37	0.42	0.34	0.41	0.57	1.78	1.98	0.98	1.97	0.59	0.57	1.75	0.37	0.47	0.30

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 fluctuations over the past few periods. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio has ranged from a low of 0.29 to a high of 1.98 over the periods provided. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term obligations without selling inventory.

In recent periods, the quick ratio has generally been below 1.0, suggesting that Constellation Brands Inc Class A may have some challenges in meeting its short-term obligations with its current liquid assets alone. However, it is important to note that the quick ratio improved significantly in the periods of August 31, 2021, and May 31, 2021, reaching very comfortable levels of 1.78 and 1.98 respectively, indicating a stronger ability to cover short-term liabilities with liquid assets during those periods.

Investors and stakeholders may want to monitor the quick ratio closely to assess the company's liquidity position and ability to meet its financial obligations in the short term. Additionally, further analysis of the components of the quick ratio, such as inventory levels and accounts receivable, may provide additional insights into Constellation Brands Inc Class A's liquidity management strategy.