What is New Century Group Hong Kong Current Ratio?
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. New Century Group Hong Kong's current ratio for the quarter that ended in Sep. 2023 was 10.44.
New Century Group Hong Kong has a current ratio of 10.44. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for New Century Group Hong Kong's Current Ratio or its related term are showing as below:
HKSE:00234'
s Current Ratio Range Over the Past 10 Years
Min: 4.68 Med: 9.1 Max: 34.17
Current: 10.44
During the past 13 years, New Century Group Hong Kong's highest Current Ratio was 34.17. The lowest was 4.68. And the median was 9.10.
HKSE:00234's Current Ratio is ranked better than 56.82% of 44
companies
in the Banks industry
Industry Median: 2.67
vs HKSE:00234: 10.44
New Century Group Hong Kong 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.
Competitive Comparison of New Century Group Hong Kong's Current Ratio
For the Mortgage Finance subindustry, New Century Group Hong Kong'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.
New Century Group Hong Kong's Current Ratio Distribution in the Banks Industry
For the Banks industry and Financial Services sector, New Century Group Hong Kong's Current Ratio distribution charts can be found below:
* The bar in red indicates where New Century Group Hong Kong's Current Ratio falls into.
New Century Group Hong Kong Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* 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.
New Century Group Hong Kong (HKSE:00234) 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.
New Century Group Hong Kong Current Ratio Related Terms
Thank you for viewing the detailed overview of New Century Group Hong Kong's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New Century Group Hong Kong (HKSE:00234) Business Description
New Century Group Hong Kong Ltd is an investment holding company. The firm along with its subsidiaries is engaged in the business segments of Property investments; Money lending services; and Securities trading, where the securities trading segment engages in the trading of marketable securities for short-term investment purposes, the property investments segment invests in prime office space and commercial shops for their rental income potential and the money lending segment engages in the provision of secured mortgage loans and unsecured personal loans. The company derives the majority of its revenue from the Money lending segment. The group operates in Hong Kong and the rest of Southeast Asia, of which maximum revenue is generated from Hong Kong.
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