Constellation Brands Inc Class A (STZ)

Quick 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
Cash	US$ in thousands	68,100	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
Short-term investments	US$ in thousands	—	—	0	—	—	—	—	—	-93,200	-95,000	-91,800	-172,300	—	—	2,819,000	2,656,000	—	2,959,000	—	—
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		0.02	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

February 28, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($68,100K + $—K + $—K) ÷ $4,035,200K
= 0.02

The quick ratio of Constellation Brands Inc Class A has shown significant fluctuations over the period analyzed. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

From November 2020 to May 2021, the quick ratio experienced a notable increase from 1.52 to 1.53, indicating a strong ability to cover its current liabilities with its liquid assets. However, this was followed by a decline to 0.07 by February 2022, signifying a potential liquidity strain.

Subsequently, there were fluctuations in the quick ratio, hovering around the range of 0.01 to 0.06 until May 2023, suggesting ongoing challenges in maintaining liquidity. The ratio improved slightly to 0.05 by February 2024 but remained relatively low, indicating the company may still face difficulties in meeting its short-term obligations.

Overall, the quick ratio of Constellation Brands Inc Class A has shown volatility and inconsistency, reflecting potential liquidity risks that may affect its financial health and ability to cover immediate liabilities. Investors and stakeholders should closely monitor the company's liquidity position to assess its short-term financial stability.