* 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 Hangzhou Zhongheng Electric Co's Quick Ratio
For the Electrical Equipment & Parts subindustry, Hangzhou Zhongheng Electric Co's Quick Ratio, along with its competitors' market caps and Quick 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.
Hangzhou Zhongheng Electric Co's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hangzhou Zhongheng Electric Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Hangzhou Zhongheng Electric Co's Quick Ratio falls into.
Hangzhou Zhongheng Electric Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current 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.
Hangzhou Zhongheng Electric Co (SZSE:002364) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Hangzhou Zhongheng Electric Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Hangzhou Zhongheng Electric Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hangzhou Zhongheng Electric Co (SZSE:002364) Business Description
Hangzhou Zhongheng Electric Co Ltd is a China-based provider of electric power informatization software and consulting services. It offers high-frequency switching power systems for the telecommunication, electricity generation, and railway industries. The business segments of the company are Power informatization and Power electronics manufacturing. The products of the company are offered in the categories of power information, electronic manufacturing and energy internet. Its products include power IoT monitoring products, power production lean management products, relay protection setting calculation system, electric vehicle charging station equipment, high-voltage DC power system, energy internet products, and others.
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