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 Lesso Group Holdings's current ratio for the quarter that ended in Dec. 2023 was 0.85.
China Lesso Group Holdings has a current ratio of 0.85. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If China Lesso Group 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 China Lesso Group Holdings's Current Ratio or its related term are showing as below:
HKSE:02128'
s Current Ratio Range Over the Past 10 Years
Min: 0.85 Med: 1.16 Max: 1.92
Current: 0.85
During the past 13 years, China Lesso Group Holdings's highest Current Ratio was 1.92. The lowest was 0.85. And the median was 1.16.
HKSE:02128's Current Ratio is ranked worse than 90.52% of 1688
companies
in the Construction industry
Industry Median: 1.555
vs HKSE:02128: 0.85
China Lesso Group Holdings 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 Lesso Group Holdings's Current Ratio
For the Building Products & Equipment subindustry, China Lesso Group 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.
China Lesso Group Holdings's Current Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, China Lesso Group Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Lesso Group Holdings's Current Ratio falls into.
China Lesso Group 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.
* 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 Lesso Group Holdings (HKSE:02128) 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 Lesso Group Holdings Current Ratio Related Terms
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China Lesso Group Holdings (HKSE:02128) Business Description
China Lesso Group Holdings Ltd is engaged in the manufacturing and selling of piping and building materials in Mainland China. The company provides high-quality products and services such as plastic piping, building materials, and home improvement, new energy, environmental protection, and operates a supply chain service platform. The company has eight operating segments based on the geographical areas which include Southern China, Southwestern China, Central China, Eastern China, Northern China, Northwestern China, Northeastern China, and Outside China, all of which include various Chinese provinces.
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