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Perennial InternationalHKSE:00725 51 Current Ratio is 4.37 as of Dec. 2025, which is 66% above its 10-year median of 2.64. GuruFocus rates HKSE:00725 with a GF Score™ of 51/100 and a GF Value™ of HK$0.79 (Modestly Overvalued). Among 3,075 Industrial Products companies, Perennial International ranks better than 86.93% 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. Perennial International's current ratio for the quarter that ended in Dec. 2025 was 4.37.
Perennial International has a current ratio of 4.37. 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 Perennial International's Current Ratio or its related term are showing as below:
HKSE:00725'
s Current Ratio Range Over the Past 10 Years
Min: 2.2 Med: 2.64 Max: 5.92
Current: 4.37
During the past 13 years, Perennial International's highest Current Ratio was 5.92. The lowest was 2.20. And the median was 2.64.
HKSE:00725's Current Ratio is ranked better than 86.93% of 3075
companies
in the Industrial Products industry
Industry Median: 1.96
vs HKSE:00725: 4.37
Perennial International (HKSE:00725) 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.
Perennial International Current Ratio Related Terms
Perennial International 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.
For the Electrical Equipment & Parts subindustry, Perennial International'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.
Perennial International Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Perennial International's Current Ratio distribution charts can be found below:
* The bar in red indicates where Perennial International'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.
Perennial International (HKSE:00725) has a Current Ratio of 4.37 as of Dec. 2025. This is 66% above median its historical median of 2.64. Over the past decade, Perennial International's Current Ratio has ranged from 2.20 to 5.92. According to the industry distribution chart, Perennial International ranks #402 out of 3075 companies in the Industrial Products industry, placing it in the top 13.1%.
Is Perennial International's Current Ratio too high?
Perennial International's current Current Ratio of 4.37 is 66% above median its 10-year median of 2.64. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 5.92. The Industrial Products industry median Current Ratio is 1.96. Perennial International's value of 4.37 is 123% above this industry median. Based on the distribution chart, Perennial International ranks #402 out of 3075 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Perennial International has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Perennial International's Current Ratio compare to VRT and BE?
According to the Industrial Products industry distribution chart, Perennial International ranks #402 out of 3075 companies for Current Ratio. This places Perennial International in the top 13% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Perennial International's value of 4.37 is 123% above this benchmark. Historically, Perennial International's own Current Ratio has ranged from 2.20 to 5.92 over the past decade. While the company's 10-year median is 2.64 vs. the industry median of 1.96, Perennial International 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,075 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. Perennial International's current Current Ratio of 4.37 is 123% 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 Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perennial International's current Current Ratio is 4.37, which is 66% above median its own 10-year median of 2.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perennial International stock overvalued right now?
Based on GuruFocus' analysis, Perennial International (HKSE:00725) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.79, compared to a current price of HK$0.96 — trading 21.5% above its estimated fair value. The current Current Ratio is 4.37, which is 66% above median its 10-year median of 2.64 and 123% above the Industrial Products industry median of 1.96. Perennial International's overall GF Score™ is 51/100. 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 Perennial International (HKSE:00725), the current Current Ratio is 4.37 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 Perennial International (HKSE:00725) Overvalued in 2026?
Based on GuruFocus' analysis, Perennial International stock appears to be overvalued.
The current stock price of HK$0.96 is trading 21.5% above its estimated GF Value™ of HK$0.79.
GuruFocus considers Perennial International to be Modestly Overvalued.
Key valuation signals for HKSE:00725:
Current Ratio: 4.37 (66% above median its 10-year median of 2.64)
GF Value™: HK$0.79 vs. price of HK$0.96 (21.5% above fair value)
Industry Position: 123% above the Industrial Products median (#402 of 3075)
No single metric tells the full story. See the HKSE:00725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perennial International Ltd is investment holding. Its subsidiaries are principally engaged in the manufacturing and trading of electric cable and wire products. Geographically the company generates revenue from Hong Kong, The PRC, America, Vietnam, Japan, and Other countries. The majority of the company's revenue is earned in America.
51GF Score
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