Luoyang Kechuang New Material Co (BJSE:920580) Current Ratio: 7.15 (As of Jun. 2026) — 25% Above Median

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BJSE:920580 Luoyang Kechuang New Material Co Ltd BJSE:920580
77 GF Score
Price ¥10.75
GF Value ¥15.66
Valuation Possible Value Trap
! 4 Warning Signs
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What is Luoyang Kechuang New Material Co Current Ratio?

Luoyang Kechuang New Material Co BJSE:920580 77 Current Ratio is 7.15 as of Jun. 2026, which is 25% above its 10-year median of 5.74. GuruFocus rates BJSE:920580 with a GF Score™ of 77/100 and a GF Value™ of ¥15.66 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 409 Building Materials companies, Luoyang Kechuang New Material Co ranks better than 95.6% on this metric.

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. Luoyang Kechuang New Material Co's current ratio for the quarter that ended in Jun. 2026 was 7.15.

Luoyang Kechuang New Material Co has a current ratio of 7.15. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.

The historical rank and industry rank for Luoyang Kechuang New Material Co's Current Ratio or its related term are showing as below:

BJSE:920580' s Current Ratio Range Over the Past 10 Years
Min: 2.77   Med: 5.74   Max: 10.78
Current: 7.15

During the past 13 years, Luoyang Kechuang New Material Co's highest Current Ratio was 10.78. The lowest was 2.77. And the median was 5.74.

BJSE:920580's Current Ratio is ranked better than
95.6% of 409 companies
in the Building Materials industry
Industry Median: 1.52 vs BJSE:920580: 7.15

Luoyang Kechuang New Material Co  (BJSE:920580) 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.


Luoyang Kechuang New Material Co Current Ratio Related Terms


Luoyang Kechuang New Material Co Current Ratio Historical Data

* Premium members only.

The historical data trend for Luoyang Kechuang New Material Co'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.

Luoyang Kechuang New Material Co Current Ratio Chart

Luoyang Kechuang New Material Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.72 9.00 7.98 7.76 5.64

Luoyang Kechuang New Material Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.48 5.54 5.64 5.94 7.15

BJSE:920580 vs CRH, VMC, MLM: Current Ratio Comparison

For the Building Materials subindustry, Luoyang Kechuang New Material 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.


Luoyang Kechuang New Material Co Current Ratio vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, Luoyang Kechuang New Material Co's Current Ratio distribution charts can be found below:

* The bar in red indicates where Luoyang Kechuang New Material Co's Current Ratio falls into.


BJSE:920580
77GF Score
Luoyang Kechuang New Material Co Ltd BJSE:920580
Current Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luoyang Kechuang New Material 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.

Luoyang Kechuang New Material Co's Current Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Current Ratio (A: Dec. 2025 )=Total Current Assets (A: Dec. 2025 )/Total Current Liabilities (A: Dec. 2025 )
=246.835/43.763
=5.64

Luoyang Kechuang New Material Co's Current Ratio for the quarter that ended in Jun. 2026 is calculated as

Current Ratio (Q: Jun. 2026 )=Total Current Assets (Q: Jun. 2026 )/Total Current Liabilities (Q: Jun. 2026 )
=245.934/34.414
=7.15

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 7.15 mean?
Luoyang Kechuang New Material Co (BJSE:920580) has a Current Ratio of 7.15 as of Jun. 2026. This is 25% above median its historical median of 5.74. Over the past decade, Luoyang Kechuang New Material Co's Current Ratio has ranged from 2.77 to 10.78. According to the industry distribution chart, Luoyang Kechuang New Material Co ranks #18 out of 409 companies in the Building Materials industry, placing it in the top 4.4%.
Is Luoyang Kechuang New Material Co's Current Ratio too high?
Luoyang Kechuang New Material Co's current Current Ratio of 7.15 is 25% above median its 10-year median of 5.74. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 10.78. The Building Materials industry median Current Ratio is 1.52. Luoyang Kechuang New Material Co's value of 7.15 is 370.4% above this industry median. Based on the distribution chart, Luoyang Kechuang New Material Co ranks #18 out of 409 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Luoyang Kechuang New Material Co has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Luoyang Kechuang New Material Co's Current Ratio compare to CRH and VMC?
According to the Building Materials industry distribution chart, Luoyang Kechuang New Material Co ranks #18 out of 409 companies for Current Ratio. This places Luoyang Kechuang New Material Co in the top 4% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.52. Luoyang Kechuang New Material Co's value of 7.15 is 370.4% above this benchmark. Historically, Luoyang Kechuang New Material Co's own Current Ratio has ranged from 2.77 to 10.78 over the past decade. While the company's 10-year median is 5.74 vs. the industry median of 1.52, Luoyang Kechuang New Material Co 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 Current Ratio for a Building Materials company?
The median Current Ratio among Building Materials companies is 1.52, based on 409 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luoyang Kechuang New Material Co's current Current Ratio of 7.15 is 370.4% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Building Materials industry, the median Current Ratio is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luoyang Kechuang New Material Co's current Current Ratio is 7.15, which is 25% above median its own 10-year median of 5.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luoyang Kechuang New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Luoyang Kechuang New Material Co (BJSE:920580) is currently considered Possible Value Trap. The stock's GF Value™ is ¥15.66, compared to a current price of ¥10.75 — trading 31.4% below its estimated fair value. The current Current Ratio is 7.15, which is 25% above median its 10-year median of 5.74 and 370.4% above the Building Materials industry median of 1.52. Luoyang Kechuang New Material Co's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Luoyang Kechuang New Material Co (BJSE:920580), the current Current Ratio is 7.15 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 Luoyang Kechuang New Material Co (BJSE:920580) Overvalued in 2026?

Based on GuruFocus' analysis, Luoyang Kechuang New Material Co stock appears to be undervalued. The current stock price of ¥10.75 is trading 31.4% below its estimated GF Value™ of ¥15.66. GuruFocus considers Luoyang Kechuang New Material Co to be Possible Value Trap.

Key valuation signals for BJSE:920580:

  • Current Ratio: 7.15 (25% above median its 10-year median of 5.74)
  • GF Value™: ¥15.66 vs. price of ¥10.75 (31.4% below fair value)
  • GF Score™: 77/100 with 4 warning signs
  • Industry Position: 370.4% above the Building Materials median (#18 of 409)

No single metric tells the full story. See the BJSE:920580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luoyang Kechuang New Material Co Business Description

Address Dongwei 2nd Road, Jingjin Road,, Luoxin Industrial Cluster Area, Cijian Town, Xin'an County, Henan Province, Luoyang City, CHN, 471822
Luoyang Kechuang New Material Co Ltd engages in research and development, production, and sales of refractory materials for steel, nonferrous metals, and other industries. The company produces ladle bottom blowing argon gas permeable components, tundish and electric furnace refractories, castables, thermal insulation and anti-seepage materials, and others.
77GF Score

Get the complete analysis for BJSE:920580

Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥10.75
Price
¥15.66
GF Value