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China Electronics Huada Technology Co (HKSE:00085) 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 Electronics Huada Technology Co Current Ratio Related Terms
China Electronics Huada Technology 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.
China Electronics Huada Technology Co Current Ratio Chart
HKSE:00085 vs NVDA, AVGO, MU: Current Ratio Comparison
For the Semiconductors subindustry, China Electronics Huada Technology 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.
China Electronics Huada Technology Co Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, China Electronics Huada Technology Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Electronics Huada Technology 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.
China Electronics Huada Technology Co (HKSE:00085) has a Current Ratio of 2.46 as of Dec. 2025. This is 55% above median its historical median of 1.59. Over the past decade, China Electronics Huada Technology Co's Current Ratio has ranged from 0.58 to 2.46. According to the industry distribution chart, China Electronics Huada Technology Co ranks #490 out of 1031 companies in the Semiconductors industry, placing it in the top 47.5%.
Is China Electronics Huada Technology Co's Current Ratio too high?
China Electronics Huada Technology Co's current Current Ratio of 2.46 is 55% above median its 10-year median of 1.59. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 2.46. The Semiconductors industry median Current Ratio is 2.38. China Electronics Huada Technology Co's value of 2.46 is 3.4% above this industry median. Based on the distribution chart, China Electronics Huada Technology Co ranks #490 out of 1031 companies in the Semiconductors industry, which is above the industry midpoint. Overall, China Electronics Huada Technology Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Electronics Huada Technology Co's Current Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, China Electronics Huada Technology Co ranks #490 out of 1031 companies for Current Ratio. This puts China Electronics Huada Technology Co in the upper half of its industry. The industry median Current Ratio is 2.38. China Electronics Huada Technology Co's value of 2.46 is 3.4% above this benchmark. Historically, China Electronics Huada Technology Co's own Current Ratio has ranged from 0.58 to 2.46 over the past decade. While the company's 10-year median is 1.59 vs. the industry median of 2.38, China Electronics Huada Technology Co 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 a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.38, based on 1,031 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 Electronics Huada Technology Co's current Current Ratio of 2.46 is 3.4% 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 Semiconductors industry, the median Current Ratio is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Electronics Huada Technology Co's current Current Ratio is 2.46, which is 55% above median its own 10-year median of 1.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Electronics Huada Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Electronics Huada Technology Co (HKSE:00085) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.14, compared to a current price of HK$0.91 — trading 20.6% below its estimated fair value. The current Current Ratio is 2.46, which is 55% above median its 10-year median of 1.59 and 3.4% above the Semiconductors industry median of 2.38. China Electronics Huada Technology Co's overall GF Score™ is 68/100 with 4 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 Electronics Huada Technology Co (HKSE:00085), the current Current Ratio is 2.46 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 Electronics Huada Technology Co (HKSE:00085) Overvalued in 2026?
Based on GuruFocus' analysis, China Electronics Huada Technology Co stock appears to be undervalued.
The current stock price of HK$0.91 is trading 20.6% below its estimated GF Value™ of HK$1.14.
GuruFocus considers China Electronics Huada Technology Co to be Modestly Undervalued.
Key valuation signals for HKSE:00085:
Current Ratio: 2.46 (55% above median its 10-year median of 1.59)
GF Value™: HK$1.14 vs. price of HK$0.91 (20.6% below fair value)
Industry Position: 3.4% above the Semiconductors median (#490 of 1031)
No single metric tells the full story. See the HKSE:00085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Electronics Huada Technology Co Ltd is an investment holding company. The principal activities of the Group are the design and sale of integrated circuit chips. The Group's integrated circuits design business comprises the design of smart cards and secure element chips and the development of application systems. Its products are mainly used in the sectors of identity authentication, financial payment, government utilities, telecommunications, Internet of Things and Internet of Vehicles. Its segment is sale of integrated circuit products and provision of services. The Group generates revenue from Mainland China.
68GF Score
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