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China Demeter Financial Investments (HKSE:08120) 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 Demeter Financial Investments Current Ratio Related Terms
China Demeter Financial Investments 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 Demeter Financial Investments Current Ratio Chart
HKSE:08120 vs MCD, SBUX, CMG: Current Ratio Comparison
For the Restaurants subindustry, China Demeter Financial Investments'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 Demeter Financial Investments Current Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, China Demeter Financial Investments's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Demeter Financial Investments'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 Demeter Financial Investments (HKSE:08120) has a Current Ratio of 1.39 as of Jun. 2026. This is 23% below median its historical median of 1.80. Over the past decade, China Demeter Financial Investments' Current Ratio has ranged from 1.11 to 8.42. According to the industry distribution chart, China Demeter Financial Investments ranks #119 out of 364 companies in the Restaurants industry, placing it in the top 32.7%.
Is China Demeter Financial Investments' Current Ratio too high?
China Demeter Financial Investments' current Current Ratio of 1.39 is 23% below median its 10-year median of 1.80. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 8.42. The Restaurants industry median Current Ratio is 1.04. China Demeter Financial Investments' value of 1.39 is 33.7% above this industry median. Based on the distribution chart, China Demeter Financial Investments ranks #119 out of 364 companies in the Restaurants industry, which is above the industry midpoint. Overall, China Demeter Financial Investments has a GF Score™ of 19/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Demeter Financial Investments' Current Ratio compare to MCD and SBUX?
According to the Restaurants industry distribution chart, China Demeter Financial Investments ranks #119 out of 364 companies for Current Ratio. This puts China Demeter Financial Investments in the upper half of its industry. The industry median Current Ratio is 1.04. China Demeter Financial Investments' value of 1.39 is 33.7% above this benchmark. Historically, China Demeter Financial Investments' own Current Ratio has ranged from 1.11 to 8.42 over the past decade. While the company's 10-year median is 1.80 vs. the industry median of 1.04, China Demeter Financial Investments 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 Restaurants company?
The median Current Ratio among Restaurants companies is 1.04, based on 364 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 Demeter Financial Investments's current Current Ratio of 1.39 is 33.7% 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 Restaurants industry, the median Current Ratio is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Demeter Financial Investments's current Current Ratio is 1.39, which is 23% below median its own 10-year median of 1.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Demeter Financial Investments stock overvalued right now?
Based on GuruFocus' analysis, China Demeter Financial Investments (HKSE:08120) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$2.18 — trading 1108.3% above its estimated fair value. The current Current Ratio is 1.39, which is 23% below median its 10-year median of 1.80 and 33.7% above the Restaurants industry median of 1.04. China Demeter Financial Investments' overall GF Score™ is 19/100 with 8 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 Demeter Financial Investments (HKSE:08120), the current Current Ratio is 1.39 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 Demeter Financial Investments (HKSE:08120) Overvalued in 2026?
Based on GuruFocus' analysis, China Demeter Financial Investments stock appears to be overvalued.
The current stock price of HK$2.18 is trading 1108.3% above its estimated GF Value™ of HK$0.18.
GuruFocus considers China Demeter Financial Investments to be Significantly Overvalued.
Key valuation signals for HKSE:08120:
Current Ratio: 1.39 (23% below median its 10-year median of 1.80)
GF Value™: HK$0.18 vs. price of HK$2.18 (1108.3% above fair value)
Industry Position: 33.7% above the Restaurants median (#119 of 364)
No single metric tells the full story. See the HKSE:08120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Demeter Financial Investments Ltd is an investment holding company. Its operating segments include money lending, which comprises provision of loan financing in Hong Kong; financial services, which includes advising and dealing in securities and asset management; securities investment, which comprises investment in listed securities; and the food and beverage segment in Hong Kong, which generates maximum revenue. The Group is also engaged in alcoholic beverage distribution and miscellaneous business, which includes sales of premium wine and whisky, trading of miscellaneous goods in Hong Kong, and provision of business advisory services, and children education services, which comprises kindergarten or pre-school education business. It operates in Hong Kong.
19GF Score
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