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China Energy Development Holdings (HKSE:00228) 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 Energy Development Holdings Current Ratio Related Terms
China Energy Development 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.
China Energy Development Holdings Current Ratio Chart
For the Oil & Gas Integrated subindustry, China Energy Development 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.
China Energy Development Holdings Current Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Energy Development Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Energy Development 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.
China Energy Development Holdings (HKSE:00228) has a Current Ratio of 1.27 as of Dec. 2025. This is 140% above median its historical median of 0.53. Over the past decade, China Energy Development Holdings' Current Ratio has ranged from 0.35 to 1.42. According to the industry distribution chart, China Energy Development Holdings ranks #500 out of 1023 companies in the Oil & Gas industry, placing it in the top 48.9%.
Is China Energy Development Holdings' Current Ratio too high?
China Energy Development Holdings' current Current Ratio of 1.27 is 140% above median its 10-year median of 0.53. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 1.42. The Oil & Gas industry median Current Ratio is 1.38. China Energy Development Holdings' value of 1.27 is 8% below this industry median. Based on the distribution chart, China Energy Development Holdings ranks #500 out of 1023 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, China Energy Development Holdings has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Energy Development Holdings' Current Ratio compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, China Energy Development Holdings ranks #500 out of 1023 companies for Current Ratio. This puts China Energy Development Holdings in the upper half of its industry. The industry median Current Ratio is 1.38. China Energy Development Holdings' value of 1.27 is 8% below this benchmark. Historically, China Energy Development Holdings' own Current Ratio has ranged from 0.35 to 1.42 over the past decade. While the company's 10-year median is 0.53 vs. the industry median of 1.38, China Energy Development 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 an Oil & Gas company?
The median Current Ratio among Oil & Gas companies is 1.38, based on 1,023 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 Energy Development Holdings's current Current Ratio of 1.27 is 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 Oil & Gas 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. China Energy Development Holdings's current Current Ratio is 1.27, which is 140% above median its own 10-year median of 0.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Energy Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Energy Development Holdings (HKSE:00228) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.92, compared to a current price of HK$0.85 — trading 56% below its estimated fair value. The current Current Ratio is 1.27, which is 140% above median its 10-year median of 0.53 and 8% below the Oil & Gas industry median of 1.38. China Energy Development Holdings' overall GF Score™ is 62/100 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 China Energy Development Holdings (HKSE:00228), the current Current Ratio is 1.27 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 Energy Development Holdings (HKSE:00228) Overvalued in 2026?
Based on GuruFocus' analysis, China Energy Development Holdings stock appears to be undervalued.
The current stock price of HK$0.85 is trading 56% below its estimated GF Value™ of HK$1.92.
GuruFocus considers China Energy Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00228:
Current Ratio: 1.27 (140% above median its 10-year median of 0.53)
GF Value™: HK$1.92 vs. price of HK$0.85 (56% below fair value)
Industry Position: 8% below the Oil & Gas median (#500 of 1023)
No single metric tells the full story. See the HKSE:00228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Energy Development Holdings Ltd is engaged in oil and gas exploration; distribution of natural gas; sales of food and beverages and money lending business in Hong Kong. The company is engaged in three segments, namely, The Exploration, Production and Distribution of Natural Gas segment engaged in the exploration, development, production and sales of natural gas and the usage of pipeline for distribution of natural gas. Majority of the revenue is derived from The Exploration, Production and Distribution of Natural Gas segment. Geographically, the company operates in PRC and Hong Kong region.
62GF Score
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