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Smart City Development Holdings (HKSE:08268) 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.
Smart City Development Holdings Current Ratio Related Terms
Smart City Development Holdings 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.
Smart City Development Holdings Current Ratio Chart
HKSE:08268 vs PWR, FIX, EME: Current Ratio Comparison
For the Engineering & Construction subindustry, Smart City Development Holdings'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.
Smart City Development Holdings Current Ratio vs Construction Industry
For the Construction industry and Industrials sector, Smart City Development Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Smart City Development Holdings'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.
Smart City Development Holdings (HKSE:08268) has a Current Ratio of 1.34 as of Mar. 2026. This is near median its historical median of 1.27. Over the past decade, Smart City Development Holdings' Current Ratio has ranged from 1.10 to 1.60. According to the industry distribution chart, Smart City Development Holdings ranks #1125 out of 1793 companies in the Construction industry, placing it in the top 62.7%.
Is Smart City Development Holdings' Current Ratio too high?
Smart City Development Holdings' current Current Ratio of 1.34 is near median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 1.60. The Construction industry median Current Ratio is 1.59. Smart City Development Holdings' value of 1.34 is 15.7% below this industry median. Based on the distribution chart, Smart City Development Holdings ranks #1125 out of 1793 companies in the Construction industry, which is below the industry midpoint. Overall, Smart City Development Holdings has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Smart City Development Holdings' Current Ratio compare to PWR and FIX?
According to the Construction industry distribution chart, Smart City Development Holdings ranks #1125 out of 1793 companies for Current Ratio. This places Smart City Development Holdings in the lower half of its industry. The industry median Current Ratio is 1.59. Smart City Development Holdings' value of 1.34 is 15.7% below this benchmark. Historically, Smart City Development Holdings' own Current Ratio has ranged from 1.10 to 1.60 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 1.59, Smart City Development Holdings 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 Construction company?
The median Current Ratio among Construction companies is 1.59, based on 1,793 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. Smart City Development Holdings's current Current Ratio of 1.34 is 15.7% 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 Construction industry, the median Current Ratio is 1.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart City Development Holdings's current Current Ratio is 1.34, which is near 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 Smart City Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Smart City Development Holdings (HKSE:08268) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.19 — trading 48.6% below its estimated fair value. The current Current Ratio is 1.34, which is near median its 10-year median of 1.27 and 15.7% below the Construction industry median of 1.59. Smart City Development Holdings' overall GF Score™ is 39/100 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 Smart City Development Holdings (HKSE:08268), the current Current Ratio is 1.34 as of Mar. 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 Smart City Development Holdings (HKSE:08268) Overvalued in 2026?
Based on GuruFocus' analysis, Smart City Development Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 48.6% below its estimated GF Value™ of HK$0.37.
GuruFocus considers Smart City Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:08268:
Current Ratio: 1.34 (near median its 10-year median of 1.27)
GF Value™: HK$0.37 vs. price of HK$0.19 (48.6% below fair value)
Industry Position: 15.7% below the Construction median (#1125 of 1793)
No single metric tells the full story. See the HKSE:08268 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart City Development Holdings Ltd is involved in securities investment, money lending, property investment and construction business sectors. The company has four segments: the construction segment, which is the key revenue-generating business, involves various processes including, building construction works, electrical and mechanical engineering works and fitting-out works; the securities investment segment is engaged in investment in securities; the property investment business segment is engaged in the holding of investment properties; and the money lending business segment. It has a business presence in Hong Kong and Mainland China.
39GF Score
Get the complete analysis for HKSE:08268
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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