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Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:836260) Current Ratio : 3.63 (As of Mar. 2024)


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What is Chengdu Zhonghuan Flow Controls Mfg Co Current Ratio?

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Chengdu Zhonghuan Flow Controls Mfg Co's current ratio for the quarter that ended in Mar. 2024 was 3.63.

Chengdu Zhonghuan Flow Controls Mfg Co has a current ratio of 3.63. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.

The historical rank and industry rank for Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio or its related term are showing as below:

BJSE:836260' s Current Ratio Range Over the Past 10 Years
Min: 2.2   Med: 3.64   Max: 10.34
Current: 3.63

During the past 11 years, Chengdu Zhonghuan Flow Controls Mfg Co's highest Current Ratio was 10.34. The lowest was 2.20. And the median was 3.64.

BJSE:836260's Current Ratio is ranked better than
79.74% of 3026 companies
in the Industrial Products industry
Industry Median: 1.99 vs BJSE:836260: 3.63

Chengdu Zhonghuan Flow Controls Mfg Co Current Ratio Historical Data

The historical data trend for Chengdu Zhonghuan Flow Controls Mfg Co's Current 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.

* Premium members only.

Chengdu Zhonghuan Flow Controls Mfg Co Current Ratio Chart

Chengdu Zhonghuan Flow Controls Mfg Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.44 3.54 4.31 3.02 3.31

Chengdu Zhonghuan Flow Controls Mfg Co Quarterly Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.36 3.21 3.34 3.31 3.63

Competitive Comparison of Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio

For the Specialty Industrial Machinery subindustry, Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio, along with its competitors' market caps and Current 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.


Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio distribution charts can be found below:

* The bar in red indicates where Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio falls into.



Chengdu Zhonghuan Flow Controls Mfg Co Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Current Ratio (A: Dec. 2023 )=Total Current Assets (A: Dec. 2023 )/Total Current Liabilities (A: Dec. 2023 )
=461.645/139.542
=3.31

Chengdu Zhonghuan Flow Controls Mfg Co's Current Ratio for the quarter that ended in Mar. 2024 is calculated as

Current Ratio (Q: Mar. 2024 )=Total Current Assets (Q: Mar. 2024 )/Total Current Liabilities (Q: Mar. 2024 )
=455.994/125.564
=3.63

* 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.


Chengdu Zhonghuan Flow Controls Mfg Co  (BJSE:836260) Current Ratio Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


Chengdu Zhonghuan Flow Controls Mfg Co Current Ratio Related Terms

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Chengdu Zhonghuan Flow Controls Mfg Co (BJSE:836260) Business Description

Traded in Other Exchanges
N/A
Address
No. 2139, Konggang 4th Road, Southwest Airport, Pilot Free Trade Zone, Xihanggang, Shuangliu District, Chengdu, CHN, 610207
Chengdu Zhonghuan Flow Controls Mfg Co Ltd engages in the design, development, production, and sales of valve actuators, wellhead safety control systems, and skid-mounted equipment. It manufactures API 6D valve gas-hydraulic actuators, electro-hydraulic actuators, and pneumatic actuators; API 6A wellhead safety control systems, wellhead safety valve actuators; skids for major conventional oil and gas fields, unconventional oil and gas fields, gas storage depots, and local gas companies Assembly and module manufacturing; control valves and instrumentation.

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