Hong Leong AsiaFRA:HOM 56 Current Ratio is 1.39 as of Dec. 2025, which is 3% below its 10-year median of 1.44. GuruFocus rates FRA:HOM with a GF Score™ of 56/100 and a GF Value™ of €0.66 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,337 Vehicles & Parts companies, Hong Leong Asia ranks worse than 56.17% 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. Hong Leong Asia's current ratio for the quarter that ended in Dec. 2025 was 1.39.
Hong Leong Asia has a current ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hong Leong Asia's Current Ratio or its related term are showing as below:
FRA:HOM'
s Current Ratio Range Over the Past 10 Years
Min: 1.35 Med: 1.44 Max: 1.67
Current: 1.39
During the past 13 years, Hong Leong Asia's highest Current Ratio was 1.67. The lowest was 1.35. And the median was 1.44.
FRA:HOM's Current Ratio is ranked worse than 56.17% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs FRA:HOM: 1.39
Hong Leong Asia (FRA:HOM) 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.
Hong Leong Asia Current Ratio Related Terms
Hong Leong Asia Current Ratio Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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.
For the Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia'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.
Hong Leong Asia (FRA:HOM) has a Current Ratio of 1.39 as of Dec. 2025. This is near median its historical median of 1.44. Over the past decade, Hong Leong Asia's Current Ratio has ranged from 1.35 to 1.67. According to the industry distribution chart, Hong Leong Asia ranks #751 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 56.2%.
Is Hong Leong Asia's Current Ratio too high?
Hong Leong Asia's current Current Ratio of 1.39 is near median its 10-year median of 1.44. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 1.67. The Vehicles & Parts industry median Current Ratio is 1.53. Hong Leong Asia's value of 1.39 is 9.2% below this industry median. Based on the distribution chart, Hong Leong Asia ranks #751 out of 1337 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hong Leong Asia has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's Current Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #751 out of 1337 companies for Current Ratio. This places Hong Leong Asia in the lower half of its industry. The industry median Current Ratio is 1.53. Hong Leong Asia's value of 1.39 is 9.2% below this benchmark. Historically, Hong Leong Asia's own Current Ratio has ranged from 1.35 to 1.67 over the past decade. While the company's 10-year median is 1.44 vs. the industry median of 1.53, Hong Leong Asia 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,337 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. Hong Leong Asia's current Current Ratio of 1.39 is 9.2% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current Current Ratio is 1.39, which is near median its own 10-year median of 1.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.66, compared to a current price of €1.83 — trading 177.3% above its estimated fair value. The current Current Ratio is 1.39, which is near median its 10-year median of 1.44 and 9.2% below the Vehicles & Parts industry median of 1.53. Hong Leong Asia's overall GF Score™ is 56/100 with 3 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 Hong Leong Asia (FRA:HOM), the current Current Ratio is 1.39 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €1.83 is trading 177.3% above its estimated GF Value™ of €0.66.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
Current Ratio: 1.39 (near median its 10-year median of 1.44)
GF Value™: €0.66 vs. price of €1.83 (177.3% above fair value)
Industry Position: 9.2% below the Vehicles & Parts median (#751 of 1337)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
56GF Score
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