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Hongcheng Environmental Technology Co has a current ratio of 0.98. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Hongcheng Environmental Technology Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
Hongcheng Environmental Technology Co (HKSE:02265) 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.
Hongcheng Environmental Technology Co Current Ratio Related Terms
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co Current Ratio Chart
HKSE:02265 vs WM, RSG, WCN: Current Ratio Comparison
For the Waste Management subindustry, Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co Current Ratio vs Waste Management Industry
For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co (HKSE:02265) has a Current Ratio of 0.98 as of Dec. 2025. This is near median its historical median of 1.01. Over the past decade, Hongcheng Environmental Technology Co's Current Ratio has ranged from 0.62 to 3.86. According to the industry distribution chart, Hongcheng Environmental Technology Co ranks #187 out of 248 companies in the Waste Management industry, placing it in the top 75.4%.
Is Hongcheng Environmental Technology Co's Current Ratio too high?
Hongcheng Environmental Technology Co's current Current Ratio of 0.98 is near median its 10-year median of 1.01. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 3.86. The Waste Management industry median Current Ratio is 1.51. Hongcheng Environmental Technology Co's value of 0.98 is 34.9% below this industry median. Based on the distribution chart, Hongcheng Environmental Technology Co ranks #187 out of 248 companies in the Waste Management industry, which is in the bottom quartile relative to peers. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Current Ratio compare to WM and RSG?
According to the Waste Management industry distribution chart, Hongcheng Environmental Technology Co ranks #187 out of 248 companies for Current Ratio. This places Hongcheng Environmental Technology Co in the lower half of its industry. The industry median Current Ratio is 1.51. Hongcheng Environmental Technology Co's value of 0.98 is 34.9% below this benchmark. Historically, Hongcheng Environmental Technology Co's own Current Ratio has ranged from 0.62 to 3.86 over the past decade. While the company's 10-year median is 1.01 vs. the industry median of 1.51, Hongcheng Environmental Technology Co 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 a Waste Management company?
The median Current Ratio among Waste Management companies is 1.51, based on 248 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. Hongcheng Environmental Technology Co's current Current Ratio of 0.98 is 34.9% 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 Waste Management industry, the median Current Ratio is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongcheng Environmental Technology Co's current Current Ratio is 0.98, which is near median its own 10-year median of 1.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Current Ratio is 0.98, which is near median its 10-year median of 1.01 and 34.9% below the Waste Management industry median of 1.51. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 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 Hongcheng Environmental Technology Co (HKSE:02265), the current Current Ratio is 0.98 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued.
The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61.
GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:02265:
Current Ratio: 0.98 (near median its 10-year median of 1.01)
GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
Industry Position: 34.9% below the Waste Management median (#187 of 248)
No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score
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