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China Tobacco International (HK) Co (HKSE:06055) 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.
China Tobacco International (HK) Co Current Ratio Related Terms
China Tobacco International (HK) 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.
China Tobacco International (HK) Co Current Ratio Chart
HKSE:06055 vs PM, MO, TPB: Current Ratio Comparison
For the Tobacco subindustry, China Tobacco International (HK) 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.
China Tobacco International (HK) Co Current Ratio vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, China Tobacco International (HK) Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Tobacco International (HK) 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.
China Tobacco International (HK) Co (HKSE:06055) has a Current Ratio of 1.97 as of Jun. 2026. This is 20% above median its historical median of 1.64. Over the past decade, China Tobacco International (HK) Co's Current Ratio has ranged from 1.37 to 4.68. According to the industry distribution chart, China Tobacco International (HK) Co ranks #20 out of 46 companies in the Tobacco Products industry, placing it in the top 43.5%.
Is China Tobacco International (HK) Co's Current Ratio too high?
China Tobacco International (HK) Co's current Current Ratio of 1.97 is 20% above median its 10-year median of 1.64. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 4.68. The Tobacco Products industry median Current Ratio is 1.69. China Tobacco International (HK) Co's value of 1.97 is 16.9% above this industry median. Based on the distribution chart, China Tobacco International (HK) Co ranks #20 out of 46 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, China Tobacco International (HK) Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Tobacco International (HK) Co's Current Ratio compare to PM and MO?
According to the Tobacco Products industry distribution chart, China Tobacco International (HK) Co ranks #20 out of 46 companies for Current Ratio. This puts China Tobacco International (HK) Co in the upper half of its industry. The industry median Current Ratio is 1.69. China Tobacco International (HK) Co's value of 1.97 is 16.9% above this benchmark. Historically, China Tobacco International (HK) Co's own Current Ratio has ranged from 1.37 to 4.68 over the past decade. While the company's 10-year median is 1.64 vs. the industry median of 1.69, China Tobacco International (HK) Co 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 Tobacco Products company?
The median Current Ratio among Tobacco Products companies is 1.69, based on 46 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. China Tobacco International (HK) Co's current Current Ratio of 1.97 is 16.9% 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 Tobacco Products industry, the median Current Ratio is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tobacco International (HK) Co's current Current Ratio is 1.97, which is 20% above median its own 10-year median of 1.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tobacco International (HK) Co stock overvalued right now?
Based on GuruFocus' analysis, China Tobacco International (HK) Co (HKSE:06055) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$21.42, compared to a current price of HK$24.42 — trading 14% above its estimated fair value. The current Current Ratio is 1.97, which is 20% above median its 10-year median of 1.64 and 16.9% above the Tobacco Products industry median of 1.69. China Tobacco International (HK) Co's overall GF Score™ is 88/100 with 2 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 China Tobacco International (HK) Co (HKSE:06055), the current Current Ratio is 1.97 as of Jun. 2026. 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 China Tobacco International (HK) Co (HKSE:06055) Overvalued in 2026?
Based on GuruFocus' analysis, China Tobacco International (HK) Co stock appears to be overvalued.
The current stock price of HK$24.42 is trading 14% above its estimated GF Value™ of HK$21.42.
GuruFocus considers China Tobacco International (HK) Co to be Modestly Overvalued.
Key valuation signals for HKSE:06055:
Current Ratio: 1.97 (20% above median its 10-year median of 1.64)
GF Value™: HK$21.42 vs. price of HK$24.42 (14% above fair value)
Industry Position: 16.9% above the Tobacco Products median (#20 of 46)
No single metric tells the full story. See the HKSE:06055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tobacco International (HK) Co Ltd is engaged in the tobacco business. It operates through various segments namely the Tobacco Leaf Products Export Business, the Tobacco Leaf Product Import Business, the Cigarettes Export Business, the New Tobacco Product Export Business, and the Brazil Operation Business. The company's geographical segments are China (excluding the SARs), Indonesia, Korea, Hong Kong, Philippines, Vietnam, Brazil, Belgium, Poland, Paraguay, Egypt, and others, of which it derives maximum revenue from the PRC. It earns maximum revenue from the Tobacco Leaf Product Import Business.
88GF Score
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