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. Sunac China Holdings's current ratio for the quarter that ended in Jun. 2023 was 0.91.
Sunac China Holdings has a current ratio of 0.91. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Sunac China Holdings 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 Sunac China Holdings's Current Ratio or its related term are showing as below:
HKSE:01918'
s Current Ratio Range Over the Past 10 Years
Min: 0.9 Med: 1.23 Max: 1.69
Current: 0.97
During the past 13 years, Sunac China Holdings's highest Current Ratio was 1.69. The lowest was 0.90. And the median was 1.23.
HKSE:01918's Current Ratio is ranked worse than 77.61% of 1827
companies
in the Real Estate industry
Industry Median: 1.62
vs HKSE:01918: 0.97
Sunac China Holdings Current Ratio Historical Data
The historical data trend for Sunac China Holdings'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.
Competitive Comparison of Sunac China Holdings's Current Ratio
For the Real Estate - Development subindustry, Sunac China Holdings'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.
Sunac China Holdings's Current Ratio Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Sunac China Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sunac China Holdings's Current Ratio falls into.
Sunac China Holdings 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.
Sunac China Holdings's Current Ratio for the fiscal year that ended in Dec. 2022 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.
Sunac China Holdings (HKSE:01918) 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.
Sunac China Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Sunac China Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunac China Holdings (HKSE:01918) Business Description
Property developer Sunac China commenced operations in 2003 and listed on the Hong Kong exchange in 2010. Based in Tianjin, Sunac is geographically well diversified across China like many large-scale listed PRC developers, and into major cities including Shanghai, Beijing, Guangzhou, Shenzhen and Hainan. Sunac is founded by Sun Hongbin, major shareholder and chairman of the company that previously established Sunco Group and adopted a high leverage strategy, which Sunac also then embraced. On top of aggressive asset expansion in recent years, the significant acquisition of a stake in non-related business Leshi Internet, as well as the landmark portfolio acquisition of Dalian Wanda theme park assets on the back of a highly leveraged balance sheet, have also garnered much market attention.
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