China LiteratureCHLLF 71 Current Ratio is 3.21 as of Dec. 2025, which is 15% above its 10-year median of 2.78. GuruFocus rates CHLLF with a GF Score™ of 71/100 and a GF Value™ of $4.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 566 Interactive Media companies, China Literature ranks better than 63.25% 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. China Literature's current ratio for the quarter that ended in Dec. 2025 was 3.21.
China Literature has a current ratio of 3.21. 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 China Literature's Current Ratio or its related term are showing as below:
CHLLF'
s Current Ratio Range Over the Past 10 Years
Min: 1.28 Med: 2.78 Max: 5.35
Current: 3.21
During the past 12 years, China Literature's highest Current Ratio was 5.35. The lowest was 1.28. And the median was 2.78.
CHLLF's Current Ratio is ranked better than 63.25% of 566
companies
in the Interactive Media industry
Industry Median: 2.295
vs CHLLF: 3.21
China Literature (OTCPK:CHLLF) 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 Literature Current Ratio Related Terms
China Literature Current Ratio Historical Data
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The historical data trend for China Literature'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.
CHLLF vs GOOGL, META, SPOT: Current Ratio Comparison
For the Internet Content & Information subindustry, China Literature'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 Literature Current Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Literature's Current 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.
China Literature (CHLLF) has a Current Ratio of 3.21 as of Dec. 2025. This is 15% above median its historical median of 2.78. Over the past decade, China Literature's Current Ratio has ranged from 1.28 to 5.35. According to the industry distribution chart, China Literature ranks #208 out of 566 companies in the Interactive Media industry, placing it in the top 36.7%.
Is China Literature's Current Ratio too high?
China Literature's current Current Ratio of 3.21 is 15% above median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 5.35. The Interactive Media industry median Current Ratio is 2.30. China Literature's value of 3.21 is 39.9% above this industry median. Based on the distribution chart, China Literature ranks #208 out of 566 companies in the Interactive Media industry, which is above the industry midpoint. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's Current Ratio compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #208 out of 566 companies for Current Ratio. This puts China Literature in the upper half of its industry. The industry median Current Ratio is 2.30. China Literature's value of 3.21 is 39.9% above this benchmark. Historically, China Literature's own Current Ratio has ranged from 1.28 to 5.35 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 2.30, China Literature 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 an Interactive Media company?
The median Current Ratio among Interactive Media companies is 2.30, based on 566 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. China Literature's current Current Ratio of 3.21 is 39.9% 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 Interactive Media industry, the median Current Ratio is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Current Ratio is 3.21, which is 15% above median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current Current Ratio is 3.21, which is 15% above median its 10-year median of 2.78 and 39.9% above the Interactive Media industry median of 2.30. China Literature's overall GF Score™ is 71/100 with 5 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 China Literature (CHLLF), the current Current Ratio is 3.21 as of Dec. 2025. 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 China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
Current Ratio: 3.21 (15% above median its 10-year median of 2.78)
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
Industry Position: 39.9% above the Interactive Media median (#208 of 566)
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
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