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. Beijing Digital Telecom Co's current ratio for the quarter that ended in Jun. 2024 was 0.99.
Beijing Digital Telecom Co has a current ratio of 0.99. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Beijing Digital Telecom Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Beijing Digital Telecom Co's Current Ratio or its related term are showing as below:
HKSE:06188'
s Current Ratio Range Over the Past 10 Years
Min: 0.98 Med: 1.64 Max: 1.88
Current: 0.99
During the past 11 years, Beijing Digital Telecom Co's highest Current Ratio was 1.88. The lowest was 0.98. And the median was 1.64.
HKSE:06188's Current Ratio is ranked worse than 77.71% of 1126
companies
in the Retail - Cyclical industry
Industry Median: 1.53
vs HKSE:06188: 0.99
Beijing Digital Telecom 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.
Competitive Comparison of Beijing Digital Telecom Co's Current Ratio
For the Specialty Retail subindustry, Beijing Digital Telecom 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.
Beijing Digital Telecom Co's Current Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Beijing Digital Telecom Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Beijing Digital Telecom Co's Current Ratio falls into.
Beijing Digital Telecom Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* 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.
Beijing Digital Telecom Co (HKSE:06188) 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.
Beijing Digital Telecom Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Beijing Digital Telecom Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Beijing Digital Telecom Co Ltd is a China-based company engaged in the sale of mobile telecommunications devices and accessories, the provision of value-added services for software, and the provision of personalized services and after-sales services for mobile phones. It also provides services of developing, consulting, and transferring of technologies related to computer and cyber engineering, telecommunication commerce, and the wholesale and maintenance of telecommunication devices. The company manages its business into one segment being the sale of mobile telecommunications devices. The company derives revenue from customers located in Mainland China, Spain, Bangladesh, India, Romania, and Bulgaria, of which key revenue is derived from Mainland China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:06188 has been successfully added to your 