Tongcheng Travel HoldingsFRA:TEM +6.72%71 Current Ratio is 1.38 as of Mar. 2026, which is 16% below its 10-year median of 1.65. GuruFocus rates FRA:TEM with a GF Score™ of 71/100 and a GF Value™ of €3.01 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 857 Travel & Leisure companies, Tongcheng Travel Holdings ranks worse than 50.06% 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. Tongcheng Travel Holdings's current ratio for the quarter that ended in Mar. 2026 was 1.38.
Tongcheng Travel Holdings has a current ratio of 1.38. It generally indicates good short-term financial strength.
The historical rank and industry rank for Tongcheng Travel Holdings's Current Ratio or its related term are showing as below:
FRA:TEM'
s Current Ratio Range Over the Past 10 Years
Min: 1.17 Med: 1.65 Max: 2.3
Current: 1.38
During the past 11 years, Tongcheng Travel Holdings's highest Current Ratio was 2.30. The lowest was 1.17. And the median was 1.65.
FRA:TEM's Current Ratio is ranked worse than 50.06% of 857
companies
in the Travel & Leisure industry
Industry Median: 1.38
vs FRA:TEM: 1.38
Tongcheng Travel Holdings (FRA:TEM) 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.
Tongcheng Travel Holdings Current Ratio Related Terms
Tongcheng Travel 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.
FRA:TEM vs BKNG, ABNB, RCL: Current Ratio Comparison
For the Travel Services subindustry, Tongcheng Travel 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.
Tongcheng Travel Holdings Current Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tongcheng Travel Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tongcheng Travel 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.
Tongcheng Travel Holdings (FRA:TEM) has a Current Ratio of 1.38 as of Mar. 2026. This is 16% below median its historical median of 1.65. Over the past decade, Tongcheng Travel Holdings' Current Ratio has ranged from 1.17 to 2.30. According to the industry distribution chart, Tongcheng Travel Holdings ranks #429 out of 857 companies in the Travel & Leisure industry, placing it in the top 50.1%.
Is Tongcheng Travel Holdings' Current Ratio too high?
Tongcheng Travel Holdings' current Current Ratio of 1.38 is 16% below median its 10-year median of 1.65. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 2.30. The Travel & Leisure industry median Current Ratio is 1.38. Tongcheng Travel Holdings' value of 1.38 is 0% at this industry median. Based on the distribution chart, Tongcheng Travel Holdings ranks #429 out of 857 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Tongcheng Travel Holdings 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 Tongcheng Travel Holdings' Current Ratio compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Tongcheng Travel Holdings ranks #429 out of 857 companies for Current Ratio. This places Tongcheng Travel Holdings in the lower half of its industry. The industry median Current Ratio is 1.38. Tongcheng Travel Holdings' value of 1.38 is 0% at this benchmark. Historically, Tongcheng Travel Holdings' own Current Ratio has ranged from 1.17 to 2.30 over the past decade. While the company's 10-year median is 1.65 vs. the industry median of 1.38, Tongcheng Travel Holdings has consistently been at 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 Travel & Leisure company?
The median Current Ratio among Travel & Leisure companies is 1.38, based on 857 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. Tongcheng Travel Holdings's current Current Ratio of 1.38 is 0% at 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 Travel & Leisure industry, the median Current Ratio is 1.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongcheng Travel Holdings's current Current Ratio is 1.38, which is 16% below median its own 10-year median of 1.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (FRA:TEM) is currently considered Possible Value Trap. The stock's GF Value™ is €3.01, compared to a current price of €1.43 — trading 52.5% below its estimated fair value. The current Current Ratio is 1.38, which is 16% below median its 10-year median of 1.65 and 0% at the Travel & Leisure industry median of 1.38. Tongcheng Travel Holdings' overall GF Score™ is 71/100 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 Tongcheng Travel Holdings (FRA:TEM), the current Current Ratio is 1.38 as of Mar. 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 Tongcheng Travel Holdings (FRA:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.43 is trading 52.5% below its estimated GF Value™ of €3.01.
GuruFocus considers Tongcheng Travel Holdings to be Possible Value Trap.
Key valuation signals for FRA:TEM:
Current Ratio: 1.38 (16% below median its 10-year median of 1.65)
GF Value™: €3.01 vs. price of €1.43 (52.5% below fair value)
Industry Position: 0% at the Travel & Leisure median (#429 of 857)
No single metric tells the full story. See the FRA:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
71GF Score
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