Elegance Optical International Holdings has a current ratio of 0.83. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Elegance Optical International Holdings has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
FRA:5HW's Current Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 2.5
vs FRA:5HW: 0.84
Elegance Optical International Holdings (FRA:5HW) 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.
Elegance Optical International Holdings Current Ratio Related Terms
Elegance Optical International 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.
Elegance Optical International Holdings Current Ratio Chart
Elegance Optical International Holdings Annual Data
FRA:5HW vs ISRG, BDX, MDLN: Current Ratio Comparison
For the Medical Instruments & Supplies subindustry, Elegance Optical International 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.
Elegance Optical International Holdings Current Ratio vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Elegance Optical International Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Elegance Optical International Holdings'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.
Elegance Optical International Holdings (FRA:5HW) has a Current Ratio of 0.83 as of Sep. 2025. This is 30% below median its historical median of 1.18. Over the past decade, Elegance Optical International Holdings' Current Ratio has ranged from 0.49 to 3.92.
Is Elegance Optical International Holdings' Current Ratio too high?
Elegance Optical International Holdings' current Current Ratio of 0.83 is 30% below median its 10-year median of 1.18. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 3.92. The Medical Devices & Instruments industry median Current Ratio is 2.50. Elegance Optical International Holdings' value of 0.83 is 66.8% below this industry median. Overall, Elegance Optical International Holdings has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Elegance Optical International Holdings' Current Ratio compare to ISRG and BDX?
Elegance Optical International Holdings' Current Ratio of 0.83 can be compared against companies in the Medical Devices & Instruments industry. The industry median Current Ratio is 2.50. Elegance Optical International Holdings' value of 0.83 is 66.8% below this benchmark. Historically, Elegance Optical International Holdings' own Current Ratio has ranged from 0.49 to 3.92 over the past decade. While the company's 10-year median is 1.18 vs. the industry median of 2.50, Elegance Optical International Holdings has consistently been below 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 Medical Devices & Instruments company?
The median Current Ratio among Medical Devices & Instruments companies is 2.50, based on 855 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. Elegance Optical International Holdings's current Current Ratio of 0.83 is 66.8% below 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 Medical Devices & Instruments industry, the median Current Ratio is 2.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elegance Optical International Holdings's current Current Ratio is 0.83, which is 30% below median its own 10-year median of 1.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elegance Optical International Holdings stock overvalued right now?
Elegance Optical International Holdings (FRA:5HW) has a current Current Ratio of 0.83. The current Current Ratio is 0.83, which is 30% below median its 10-year median of 1.18 and 66.8% below the Medical Devices & Instruments industry median of 2.50. Elegance Optical International Holdings' overall GF Score™ is 8/100 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 Elegance Optical International Holdings (FRA:5HW), the current Current Ratio is 0.83 as of Sep. 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.
Elegance Optical International Holdings Business Description
Elegance Optical International Holdings Ltd and its subsidiaries are the manufacturers and sellers of optical frames and sunglasses. Its operating segments include the trading segment engaged in the manufacture and trading of optical frames and sunglasses; the Property investment segment is involved in leasing properties for rental income; the Debts and securities investment segment engaged in investments in financial instruments and quoted shares; Film investment and distribution segment engaged in film right and movie distributions; and Energy business. It derives key revenue from the trading segment. It operates in Europe, America, the PRC (including Hong Kong), and other countries.
8GF Score
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