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. Xinxiang Chemical Fibre Co's current ratio for the quarter that ended in Mar. 2024 was 1.10.
Xinxiang Chemical Fibre Co has a current ratio of 1.10. It generally indicates good short-term financial strength.
The historical rank and industry rank for Xinxiang Chemical Fibre Co's Current Ratio or its related term are showing as below:
SZSE:000949'
s Current Ratio Range Over the Past 10 Years
Min: 0.82 Med: 1.26 Max: 1.75
Current: 1.1
During the past 13 years, Xinxiang Chemical Fibre Co's highest Current Ratio was 1.75. The lowest was 0.82. And the median was 1.26.
SZSE:000949's Current Ratio is ranked worse than 82.92% of 1569
companies
in the Chemicals industry
Industry Median: 1.95
vs SZSE:000949: 1.10
Xinxiang Chemical Fibre Co 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 Xinxiang Chemical Fibre Co's Current Ratio
For the Chemicals subindustry, Xinxiang Chemical Fibre 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.
Xinxiang Chemical Fibre Co's Current Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Xinxiang Chemical Fibre Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Xinxiang Chemical Fibre Co's Current Ratio falls into.
Xinxiang Chemical Fibre 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.
* 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.
Xinxiang Chemical Fibre Co (SZSE:000949) 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.
Xinxiang Chemical Fibre Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Xinxiang Chemical Fibre Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Xinxiang Chemical Fibre Co (SZSE:000949) Business Description
Xinxiang Chemical Fibre Co Ltd specializes in producing chemical fiber textile raw materials in China. Their main products are centrifugal viscose rayon filament yarn, continuous viscose rayon filament yarn, viscose staple fiber, and polyester. The company's products are not only sold in the Chinese market but also exported to more than 30 countries and regions such as Germany, Italy, Japan, South Korea and India.
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