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Guan Chao HoldingsHKSE:01872 -7.58%52 Current Ratio is 2.26 as of Dec. 2025, which is 20% above its 10-year median of 1.88. GuruFocus rates HKSE:01872 with a GF Score™ of 52/100 and a GF Value™ of HK$0.39 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Guan Chao Holdings ranks better than 73.85% 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. Guan Chao Holdings's current ratio for the quarter that ended in Dec. 2025 was 2.26.
Guan Chao Holdings has a current ratio of 2.26. It generally indicates good short-term financial strength.
The historical rank and industry rank for Guan Chao Holdings's Current Ratio or its related term are showing as below:
HKSE:01872'
s Current Ratio Range Over the Past 10 Years
Min: 0.71 Med: 1.88 Max: 2.77
Current: 2.26
During the past 10 years, Guan Chao Holdings's highest Current Ratio was 2.77. The lowest was 0.71. And the median was 1.88.
HKSE:01872's Current Ratio is ranked better than 73.85% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs HKSE:01872: 2.26
Guan Chao Holdings (HKSE:01872) 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.
Guan Chao Holdings Current Ratio Related Terms
Guan Chao Holdings Current Ratio Historical Data
* Premium members only.
The historical data trend for Guan Chao Holdings's Current Ratio can be seen below:
* 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.
HKSE:01872 vs CVNA, PAG, KMX: Current Ratio Comparison
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Guan Chao 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.
Guan Chao Holdings (HKSE:01872) has a Current Ratio of 2.26 as of Dec. 2025. This is 20% above median its historical median of 1.88. Over the past decade, Guan Chao Holdings' Current Ratio has ranged from 0.71 to 2.77. According to the industry distribution chart, Guan Chao Holdings ranks #348 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 26.1%.
Is Guan Chao Holdings' Current Ratio too high?
Guan Chao Holdings' current Current Ratio of 2.26 is 20% above median its 10-year median of 1.88. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 2.77. The Vehicles & Parts industry median Current Ratio is 1.53. Guan Chao Holdings' value of 2.26 is 47.7% above this industry median. Based on the distribution chart, Guan Chao Holdings ranks #348 out of 1331 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Current Ratio compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #348 out of 1331 companies for Current Ratio. This puts Guan Chao Holdings in the upper half of its industry. The industry median Current Ratio is 1.53. Guan Chao Holdings' value of 2.26 is 47.7% above this benchmark. Historically, Guan Chao Holdings' own Current Ratio has ranged from 0.71 to 2.77 over the past decade. While the company's 10-year median is 1.88 vs. the industry median of 1.53, Guan Chao Holdings 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,331 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. Guan Chao Holdings's current Current Ratio of 2.26 is 47.7% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guan Chao Holdings's current Current Ratio is 2.26, which is 20% above median its own 10-year median of 1.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Current Ratio is 2.26, which is 20% above median its 10-year median of 1.88 and 47.7% above the Vehicles & Parts industry median of 1.53. Guan Chao Holdings' overall GF Score™ is 52/100 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 Guan Chao Holdings (HKSE:01872), the current Current Ratio is 2.26 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Current Ratio: 2.26 (20% above median its 10-year median of 1.88)
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
Industry Position: 47.7% above the Vehicles & Parts median (#348 of 1331)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF Score
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