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China Information Technology Development (HKSE:08178) 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 Information Technology Development Current Ratio Related Terms
China Information Technology Development 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 Information Technology Development Current Ratio Chart
China Information Technology Development Annual Data
HKSE:08178 vs IBM, ACN, FISV: Current Ratio Comparison
For the Information Technology Services subindustry, China Information Technology Development'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 Information Technology Development Current Ratio vs Software Industry
* 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 Information Technology Development (HKSE:08178) has a Current Ratio of 1.06 as of Dec. 2025. This is 17% below median its historical median of 1.27. Over the past decade, China Information Technology Development's Current Ratio has ranged from 0.87 to 2.02. According to the industry distribution chart, China Information Technology Development ranks #2220 out of 2880 companies in the Software industry, placing it in the top 77.1%.
Is China Information Technology Development's Current Ratio too high?
China Information Technology Development's current Current Ratio of 1.06 is 17% below median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.02. The Software industry median Current Ratio is 1.80. China Information Technology Development's value of 1.06 is 41.1% below this industry median. Based on the distribution chart, China Information Technology Development ranks #2220 out of 2880 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, China Information Technology Development has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Information Technology Development's Current Ratio compare to IBM and ACN?
According to the Software industry distribution chart, China Information Technology Development ranks #2220 out of 2880 companies for Current Ratio. This places China Information Technology Development in the lower half of its industry. The industry median Current Ratio is 1.80. China Information Technology Development's value of 1.06 is 41.1% below this benchmark. Historically, China Information Technology Development's own Current Ratio has ranged from 0.87 to 2.02 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 1.80, China Information Technology Development 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 Software company?
The median Current Ratio among Software companies is 1.80, based on 2,880 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 Information Technology Development's current Current Ratio of 1.06 is 41.1% 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 Software industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Information Technology Development's current Current Ratio is 1.06, which is 17% below median its own 10-year median of 1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Information Technology Development stock overvalued right now?
Based on GuruFocus' analysis, China Information Technology Development (HKSE:08178) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.70, compared to a current price of HK$0.18 — trading 74.9% below its estimated fair value. The current Current Ratio is 1.06, which is 17% below median its 10-year median of 1.27 and 41.1% below the Software industry median of 1.80. China Information Technology Development's overall GF Score™ is 29/100 with 6 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 Information Technology Development (HKSE:08178), the current Current Ratio is 1.06 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 China Information Technology Development (HKSE:08178) Overvalued in 2026?
Based on GuruFocus' analysis, China Information Technology Development stock appears to be undervalued.
The current stock price of HK$0.18 is trading 74.9% below its estimated GF Value™ of HK$0.70.
GuruFocus considers China Information Technology Development to be Possible Value Trap.
Key valuation signals for HKSE:08178:
Current Ratio: 1.06 (17% below median its 10-year median of 1.27)
GF Value™: HK$0.70 vs. price of HK$0.18 (74.9% below fair value)
Industry Position: 41.1% below the Software median (#2220 of 2880)
No single metric tells the full story. See the HKSE:08178 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Information Technology Development Ltd is an investment holding company. The company and its subsidiaries are principally engaged in provision of system integration and related support services, provision of IT infrastructure solutions and maintenance services, rental of properties and securities trading. It operates in three reportable segments: i) provision of IT infrastructure solutions and maintenance services (IT solutions and maintenance); ii) securities investments; and iii) rental of properties. It generates the majority of revenue from the IT solutions and maintenance segment. Geographically, the maximum revenue is generated from Hong Kong and the rest from the PRC except Hong Kong.
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