Erayak Power Solution GroupRAYA -0.71%51 Current Ratio is 2.09 as of Dec. 2025, which is 34% above its 10-year median of 1.56. GuruFocus rates RAYA with a GF Score™ of 51/100 and a GF Value™ of $2,184.63 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 3,073 Industrial Products companies, Erayak Power Solution Group ranks better than 55.06% on this metric.
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. Erayak Power Solution Group's current ratio for the quarter that ended in Dec. 2025 was 2.09.
Erayak Power Solution Group has a current ratio of 2.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Erayak Power Solution Group's Current Ratio or its related term are showing as below:
RAYA'
s Current Ratio Range Over the Past 10 Years
Min: 0.34 Med: 1.56 Max: 2.13
Current: 2.09
During the past 7 years, Erayak Power Solution Group's highest Current Ratio was 2.13. The lowest was 0.34. And the median was 1.56.
RAYA's Current Ratio is ranked better than 55.06% of 3073
companies
in the Industrial Products industry
Industry Median: 1.96
vs RAYA: 2.09
Erayak Power Solution Group (NAS:RAYA) 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.
Erayak Power Solution Group Current Ratio Related Terms
Erayak Power Solution Group 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.
RAYA vs LNKS, CCTG, ELPW: Current Ratio Comparison
For the Electrical Equipment & Parts subindustry, Erayak Power Solution Group'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.
Erayak Power Solution Group Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Erayak Power Solution Group'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.
Erayak Power Solution Group (RAYA) has a Current Ratio of 2.09 as of Dec. 2025. This is 34% above median its historical median of 1.56. Over the past decade, Erayak Power Solution Group's Current Ratio has ranged from 0.34 to 2.13. According to the industry distribution chart, Erayak Power Solution Group ranks #1381 out of 3073 companies in the Industrial Products industry, placing it in the top 44.9%.
Is Erayak Power Solution Group's Current Ratio too high?
Erayak Power Solution Group's current Current Ratio of 2.09 is 34% above median its 10-year median of 1.56. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 2.13. The Industrial Products industry median Current Ratio is 1.96. Erayak Power Solution Group's value of 2.09 is 6.6% above this industry median. Based on the distribution chart, Erayak Power Solution Group ranks #1381 out of 3073 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Erayak Power Solution Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Erayak Power Solution Group's Current Ratio compare to LNKS and CCTG?
According to the Industrial Products industry distribution chart, Erayak Power Solution Group ranks #1381 out of 3073 companies for Current Ratio. This puts Erayak Power Solution Group in the upper half of its industry. The industry median Current Ratio is 1.96. Erayak Power Solution Group's value of 2.09 is 6.6% above this benchmark. Historically, Erayak Power Solution Group's own Current Ratio has ranged from 0.34 to 2.13 over the past decade. While the company's 10-year median is 1.56 vs. the industry median of 1.96, Erayak Power Solution Group 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,073 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. Erayak Power Solution Group's current Current Ratio of 2.09 is 6.6% 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 Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erayak Power Solution Group's current Current Ratio is 2.09, which is 34% above median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erayak Power Solution Group stock overvalued right now?
Based on GuruFocus' analysis, Erayak Power Solution Group (RAYA) is currently considered Possible Value Trap. The stock's GF Value™ is $2,184.63, compared to a current price of $2.79 — trading 99.9% below its estimated fair value. The current Current Ratio is 2.09, which is 34% above median its 10-year median of 1.56 and 6.6% above the Industrial Products industry median of 1.96. Erayak Power Solution Group's overall GF Score™ is 51/100 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 Erayak Power Solution Group (RAYA), the current Current Ratio is 2.09 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 Erayak Power Solution Group (RAYA) Overvalued in 2026?
Based on GuruFocus' analysis, Erayak Power Solution Group stock appears to be undervalued.
The current stock price of $2.79 is trading 99.9% below its estimated GF Value™ of $2,184.63.
GuruFocus considers Erayak Power Solution Group to be Possible Value Trap.
Key valuation signals for RAYA:
Current Ratio: 2.09 (34% above median its 10-year median of 1.56)
GF Value™: $2,184.63 vs. price of $2.79 (99.9% below fair value)
Industry Position: 6.6% above the Industrial Products median (#1381 of 3073)
No single metric tells the full story. See the RAYA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Erayak Power Solution Group Inc is engaged in the manufacturing, research and development (R&D), and wholesale and retail of power solution products. The group focuses on manufacturing new energy storage and inverter devices. Its product portfolio includes sine wave and off-grid inverters, inverters and gasoline generators, battery and smart chargers, and custom-designed products. The products are used principally in agricultural and industrial vehicles, recreational vehicles (RVs), electrical appliances, and outdoor living products. The company generates the majority of its revenue from Inverters. The company generates revenue from five main markets, which are China, Poland, Mexico, the U.K., and Portugal. It derives maximum revenue from China.
51GF Score
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