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Jiangsu Innovative Ecological New Materials has a current ratio of 6.83. 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.
Jiangsu Innovative Ecological New Materials (HKSE:02116) 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.
Jiangsu Innovative Ecological New Materials Current Ratio Related Terms
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials Current Ratio Chart
Jiangsu Innovative Ecological New Materials Annual Data
HKSE:02116 vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Jiangsu Innovative Ecological New Materials'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.
Jiangsu Innovative Ecological New Materials Current Ratio vs Chemicals Industry
* 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.
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a Current Ratio of 6.83 as of Dec. 2025. This is 14% below median its historical median of 7.90. Over the past decade, Jiangsu Innovative Ecological New Materials' Current Ratio has ranged from 2.68 to 12.84. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #123 out of 1606 companies in the Chemicals industry, placing it in the top 7.7%.
Is Jiangsu Innovative Ecological New Materials' Current Ratio too high?
Jiangsu Innovative Ecological New Materials' current Current Ratio of 6.83 is 14% below median its 10-year median of 7.90. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 12.84. The Chemicals industry median Current Ratio is 1.87. Jiangsu Innovative Ecological New Materials' value of 6.83 is 265.2% above this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #123 out of 1606 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #123 out of 1606 companies for Current Ratio. This places Jiangsu Innovative Ecological New Materials in the top 8% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.87. Jiangsu Innovative Ecological New Materials' value of 6.83 is 265.2% above this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own Current Ratio has ranged from 2.68 to 12.84 over the past decade. While the company's 10-year median is 7.90 vs. the industry median of 1.87, Jiangsu Innovative Ecological New Materials 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.87, based on 1,606 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. Jiangsu Innovative Ecological New Materials's current Current Ratio of 6.83 is 265.2% 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 Chemicals industry, the median Current Ratio is 1.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current Current Ratio is 6.83, which is 14% below median its own 10-year median of 7.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current Current Ratio is 6.83, which is 14% below median its 10-year median of 7.90 and 265.2% above the Chemicals industry median of 1.87. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 with 3 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current Current Ratio is 6.83 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
Current Ratio: 6.83 (14% below median its 10-year median of 7.90)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 265.2% above the Chemicals median (#123 of 1606)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score
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