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New Asia Construction & Development has a Cash Ratio of 0.51. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
New Asia Construction & Development (TPE:2516) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
New Asia Construction & Development Cash Ratio Related Terms
New Asia Construction & Development Cash 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.
New Asia Construction & Development Cash Ratio Chart
For the Engineering & Construction subindustry, New Asia Construction & Development's Cash Ratio, along with its competitors' market caps and Cash 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.
New Asia Construction & Development Cash Ratio vs Construction Industry
For the Construction industry and Industrials sector, New Asia Construction & Development's Cash Ratio distribution charts can be found below:
* The bar in red indicates where New Asia Construction & Development's Cash Ratio falls into.
* 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.
New Asia Construction & Development (TPE:2516) has a Cash Ratio of 0.51 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on New Asia Construction & Development and its competitors. This is near median its historical median of 0.52. Over the past decade, New Asia Construction & Development's Cash Ratio has ranged from 0.40 to 0.69. According to the industry distribution chart, New Asia Construction & Development ranks #624 out of 1760 companies in the Construction industry, placing it in the top 35.5%.
Is New Asia Construction & Development's Cash Ratio too high?
New Asia Construction & Development's current Cash Ratio of 0.51 is near median its 10-year median of 0.52. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 0.69. The Construction industry median Cash Ratio is 0.33. New Asia Construction & Development's value of 0.51 is 54.5% above this industry median. Based on the distribution chart, New Asia Construction & Development ranks #624 out of 1760 companies in the Construction industry, which is above the industry midpoint. Overall, New Asia Construction & Development has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does New Asia Construction & Development's Cash Ratio compare to PWR and FIX?
According to the Construction industry distribution chart, New Asia Construction & Development ranks #624 out of 1760 companies for Cash Ratio. This puts New Asia Construction & Development in the upper half of its industry. The industry median Cash Ratio is 0.33. New Asia Construction & Development's value of 0.51 is 54.5% above this benchmark. Historically, New Asia Construction & Development's own Cash Ratio has ranged from 0.40 to 0.69 over the past decade. While the company's 10-year median is 0.52 vs. the industry median of 0.33, New Asia Construction & Development has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Construction company?
The median Cash Ratio among Construction companies is 0.33, based on 1,760 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Asia Construction & Development's current Cash Ratio of 0.51 is 54.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on New Asia Construction & Development and its competitors. For the Construction industry, the median Cash Ratio is 0.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Asia Construction & Development's current Cash Ratio is 0.51, which is near median its own 10-year median of 0.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Asia Construction & Development stock overvalued right now?
Based on GuruFocus' analysis, New Asia Construction & Development (TPE:2516) is currently considered Fairly Valued. The stock's GF Value™ is NT$13.65, compared to a current price of NT$14.70 — trading 7.7% above its estimated fair value. The current Cash Ratio is 0.51, which is near median its 10-year median of 0.52 and 54.5% above the Construction industry median of 0.33. New Asia Construction & Development's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For New Asia Construction & Development (TPE:2516), the current Cash Ratio is 0.51 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is New Asia Construction & Development (TPE:2516) Overvalued in 2026?
Based on GuruFocus' analysis, New Asia Construction & Development stock appears to be overvalued.
The current stock price of NT$14.70 is trading 7.7% above its estimated GF Value™ of NT$13.65.
GuruFocus considers New Asia Construction & Development to be Fairly Valued.
Key valuation signals for TPE:2516:
Cash Ratio: 0.51 (near median its 10-year median of 0.52)
GF Value™: NT$13.65 vs. price of NT$14.70 (7.7% above fair value)
Industry Position: 54.5% above the Construction median (#624 of 1760)
No single metric tells the full story. See the TPE:2516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Asia Construction & Development Corp and its subsidiaries are engaged in the construction of heavy equipment needed for civil engineering, development business related to land and community, construction, leasing or selling of public housing and office building, repairment, leasing and selling of heavy equipment, manufacturing and selling of ready mixed concrete and asphalt concrete, and investment. The Group operates in the construction segment, which is engaged in the construction of residential and commercial buildings and civil engineering contracts. The company operates in Taiwan and Asia, and the maximum revenue is generated from Taiwan.
80GF Score
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