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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. New Horizon Health's current ratio for the quarter that ended in Jun. 2023 was 10.77.
New Horizon Health has a current ratio of 10.77. 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.
The historical rank and industry rank for New Horizon Health's Current Ratio or its related term are showing as below:
HKSE:06606's Current Ratio is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 2.49 * Ranked among companies with meaningful Current Ratio only.
New Horizon Health (HKSE:06606) 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.
New Horizon Health Current Ratio Related Terms
New Horizon Health Current Ratio Historical Data
* Premium members only.
The historical data trend for New Horizon Health'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:06606 vs ABT, SYK, MDT: Current Ratio Comparison
For the Medical Devices subindustry, New Horizon Health'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.
New Horizon Health Current Ratio vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, New Horizon Health's Current Ratio distribution charts can be found below:
* The bar in red indicates where New Horizon Health'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.
New Horizon Health (HKSE:06606) has a Current Ratio of 10.77 as of Jun. 2023.
Is New Horizon Health's Current Ratio too high?
New Horizon Health's current Current Ratio is 10.77. The Medical Devices & Instruments industry median Current Ratio is 2.49. New Horizon Health's value of 10.77 is 332.5% above this industry median. Overall, New Horizon Health has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does New Horizon Health's Current Ratio compare to ABT and SYK?
New Horizon Health's Current Ratio of 10.77 can be compared against companies in the Medical Devices & Instruments industry. The industry median Current Ratio is 2.49. New Horizon Health's value of 10.77 is 332.5% above this benchmark. 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 Medical Devices & Instruments company?
The median Current Ratio among Medical Devices & Instruments companies is 2.49, based on 853 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. New Horizon Health's current Current Ratio of 10.77 is 332.5% 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 Medical Devices & Instruments industry, the median Current Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Horizon Health's current Current Ratio is 10.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Horizon Health stock overvalued right now?
New Horizon Health (HKSE:06606) has a current Current Ratio of 10.77. The current Current Ratio is 10.77 and 332.5% above the Medical Devices & Instruments industry median of 2.49. New Horizon Health's overall GF Score™ is 35/100. 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 New Horizon Health (HKSE:06606), the current Current Ratio is 10.77 as of Jun. 2023. 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.
New Horizon Health Ltd is engaged in early cancer screening and in-home testing in China. The company has an early detection and cancer screening-focused pipeline of five products and product candidates with an emphasis on colorectal cancer screening. The company focuses on cancer prevention and cure through screening and early detection. It generates maximum revenue from ColoClear and Pupu Tube products.
35GF Score
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