The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Constellation Brands's Cash Ratio for the quarter that ended in Feb. 2024 was 0.05.
Constellation Brands has a Cash Ratio of 0.05. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Constellation Brands's Cash Ratio or its related term are showing as below:
STZ'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.05 Max: 0.36
Current: 0.05
During the past 13 years, Constellation Brands's highest Cash Ratio was 0.36. The lowest was 0.03. And the median was 0.05.
STZ's Cash Ratio is ranked worse than 89.11% of 202
companies
in the Beverages - Alcoholic industry
Industry Median: 0.33
vs STZ: 0.05
Constellation Brands Cash Ratio Historical Data
The historical data trend for Constellation Brands's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Constellation Brands's Cash Ratio
For the Beverages - Wineries & Distilleries subindustry, Constellation Brands's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Constellation Brands's Cash Ratio Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Cash Ratio falls into.
Constellation Brands Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Constellation Brands's Cash Ratio for the fiscal year that ended in Feb. 2024 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Constellation Brands (NYSE:STZ) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Constellation Brands Cash Ratio Related Terms
Thank you for viewing the detailed overview of Constellation Brands's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Constellation Brands (Constellation Brands) Business Description
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the U.S., generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company continue to prune assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the U.S., the firm has small revenue exposure to international markets. Constellation owns a 36% stake in no-moat Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
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