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Northeast Electrical Development Co has a current ratio of 0.32. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Northeast Electrical Development Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
Northeast Electrical Development Co (HKSE:00042) 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.
Northeast Electrical Development Co Current Ratio Related Terms
Northeast Electrical Development Co 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.
Northeast Electrical Development Co Current Ratio Chart
HKSE:00042 vs MAR, HLT, H: Current Ratio Comparison
For the Lodging subindustry, Northeast Electrical Development 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.
Northeast Electrical Development Co Current Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Northeast Electrical Development Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Northeast Electrical Development Co'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.
Northeast Electrical Development Co (HKSE:00042) has a Current Ratio of 0.32 as of Dec. 2025. This is 18% below median its historical median of 0.39. Over the past decade, Northeast Electrical Development Co's Current Ratio has ranged from 0.32 to 2.08. According to the industry distribution chart, Northeast Electrical Development Co ranks #794 out of 855 companies in the Travel & Leisure industry, placing it in the top 92.9%.
Is Northeast Electrical Development Co's Current Ratio too high?
Northeast Electrical Development Co's current Current Ratio of 0.32 is 18% below median its 10-year median of 0.39. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 2.08. The Travel & Leisure industry median Current Ratio is 1.37. Northeast Electrical Development Co's value of 0.32 is 76.6% below this industry median. Based on the distribution chart, Northeast Electrical Development Co ranks #794 out of 855 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Northeast Electrical Development Co has a GF Score™ of 26/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northeast Electrical Development Co's Current Ratio compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Northeast Electrical Development Co ranks #794 out of 855 companies for Current Ratio. This places Northeast Electrical Development Co in the lower half of its industry. The industry median Current Ratio is 1.37. Northeast Electrical Development Co's value of 0.32 is 76.6% below this benchmark. Historically, Northeast Electrical Development Co's own Current Ratio has ranged from 0.32 to 2.08 over the past decade. While the company's 10-year median is 0.39 vs. the industry median of 1.37, Northeast Electrical Development Co 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 Travel & Leisure company?
The median Current Ratio among Travel & Leisure companies is 1.37, 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. Northeast Electrical Development Co's current Current Ratio of 0.32 is 76.6% 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 Travel & Leisure industry, the median Current Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northeast Electrical Development Co's current Current Ratio is 0.32, which is 18% below median its own 10-year median of 0.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northeast Electrical Development Co stock overvalued right now?
Based on GuruFocus' analysis, Northeast Electrical Development Co (HKSE:00042) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.22 — trading 23.1% below its estimated fair value. The current Current Ratio is 0.32, which is 18% below median its 10-year median of 0.39 and 76.6% below the Travel & Leisure industry median of 1.37. Northeast Electrical Development Co's overall GF Score™ is 26/100 with 6 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 Northeast Electrical Development Co (HKSE:00042), the current Current Ratio is 0.32 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 Northeast Electrical Development Co (HKSE:00042) Overvalued in 2026?
Based on GuruFocus' analysis, Northeast Electrical Development Co stock appears to be undervalued.
The current stock price of HK$0.22 is trading 23.1% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Northeast Electrical Development Co to be Modestly Undervalued.
Key valuation signals for HKSE:00042:
Current Ratio: 0.32 (18% below median its 10-year median of 0.39)
GF Value™: HK$0.29 vs. price of HK$0.22 (23.1% below fair value)
Industry Position: 76.6% below the Travel & Leisure median (#794 of 855)
No single metric tells the full story. See the HKSE:00042 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northeast Electrical Development Co Ltd is principally engaged in the production and sale of power transmission equipment and related accessories; hotel operations and provision of related catering services; and investment holding. The company generates the majority of its revenue from the production and sale of power transmission equipment and related accessories. Geographically, the Group's operations are principally located in the PRC regions.
26GF Score
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