What is China Shanshui Cement Group 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. China Shanshui Cement Group's current ratio for the quarter that ended in Dec. 2023 was 0.79.
China Shanshui Cement Group has a current ratio of 0.79. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If China Shanshui Cement Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for China Shanshui Cement Group's Current Ratio or its related term are showing as below:
HKSE:00691'
s Current Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.64 Max: 0.84
Current: 0.79
During the past 13 years, China Shanshui Cement Group's highest Current Ratio was 0.84. The lowest was 0.18. And the median was 0.64.
HKSE:00691's Current Ratio is ranked worse than 86.41% of 390
companies
in the Building Materials industry
Industry Median: 1.495
vs HKSE:00691: 0.79
China Shanshui Cement Group Current Ratio Historical Data
* 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 China Shanshui Cement Group's Current Ratio
For the Building Materials subindustry, China Shanshui Cement Group'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.
China Shanshui Cement Group's Current Ratio Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, China Shanshui Cement Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Shanshui Cement Group's Current Ratio falls into.
China Shanshui Cement Group 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.
* 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.
China Shanshui Cement Group (HKSE:00691) 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.
China Shanshui Cement Group Current Ratio Related Terms
Thank you for viewing the detailed overview of China Shanshui Cement Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
China Shanshui Cement Group (HKSE:00691) Business Description
China Shanshui Cement Group Ltd is a cement producer in China. The company manufactures and sells cement, clinker, and concrete in several provinces of China. Its geographic segments include Shandong Province which contributes to the majority of revenue and several other provinces of China that include Northeastern China, Shanxi Province, and Xinjiang Region. Its products are used for national key projects, railways, highways, airports, real estates and other infrastructure construction and exported to more than 60 countries and other international markets.
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