Constellation Brands has a quick ratio of 0.53. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Constellation Brands's Quick Ratio or its related term are showing as below:
STZ'
s Quick Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.6 Max: 1.38
Current: 0.53
During the past 13 years, Constellation Brands's highest Quick Ratio was 1.38. The lowest was 0.47. And the median was 0.60.
STZ's Quick Ratio is ranked worse than 77.46% of 213
companies
in the Beverages - Alcoholic industry
Industry Median: 0.95
vs STZ: 0.53
Constellation Brands Quick Ratio Historical Data
The historical data trend for Constellation Brands's Quick 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 Quick Ratio
For the Beverages - Wineries & Distilleries subindustry, Constellation Brands's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Quick Ratio falls into.
Constellation Brands Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Constellation Brands's Quick 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) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Constellation Brands Quick Ratio Related Terms
Thank you for viewing the detailed overview of Constellation Brands's Quick 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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