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Formosa Electronic Industries has a current ratio of 3.85. 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 Formosa Electronic Industries's Current Ratio or its related term are showing as below:
ROCO:8171'
s Current Ratio Range Over the Past 10 Years
Min: 1.4 Med: 2.12 Max: 5.16
Current: 3.85
During the past 13 years, Formosa Electronic Industries's highest Current Ratio was 5.16. The lowest was 1.40. And the median was 2.12.
ROCO:8171's Current Ratio is ranked better than 80.5% of 2498
companies
in the Hardware industry
Industry Median: 1.965
vs ROCO:8171: 3.85
Formosa Electronic Industries (ROCO:8171) 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.
Formosa Electronic Industries Current Ratio Related Terms
Formosa Electronic Industries 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.
For the Electronic Components subindustry, Formosa Electronic Industries'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.
Formosa Electronic Industries Current Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Formosa Electronic Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Formosa Electronic Industries'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.
Formosa Electronic Industries (ROCO:8171) has a Current Ratio of 3.85 as of Dec. 2025. This is 82% above median its historical median of 2.12. Over the past decade, Formosa Electronic Industries' Current Ratio has ranged from 1.40 to 5.16. According to the industry distribution chart, Formosa Electronic Industries ranks #487 out of 2498 companies in the Hardware industry, placing it in the top 19.5%.
Is Formosa Electronic Industries' Current Ratio too high?
Formosa Electronic Industries' current Current Ratio of 3.85 is 82% above median its 10-year median of 2.12. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 5.16. The Hardware industry median Current Ratio is 1.97. Formosa Electronic Industries' value of 3.85 is 95.9% above this industry median. Based on the distribution chart, Formosa Electronic Industries ranks #487 out of 2498 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Electronic Industries has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Electronic Industries' Current Ratio compare to APH and GLW?
According to the Hardware industry distribution chart, Formosa Electronic Industries ranks #487 out of 2498 companies for Current Ratio. This places Formosa Electronic Industries in the top 20% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.97. Formosa Electronic Industries' value of 3.85 is 95.9% above this benchmark. Historically, Formosa Electronic Industries' own Current Ratio has ranged from 1.40 to 5.16 over the past decade. While the company's 10-year median is 2.12 vs. the industry median of 1.97, Formosa Electronic Industries 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 Hardware company?
The median Current Ratio among Hardware companies is 1.97, based on 2,498 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. Formosa Electronic Industries's current Current Ratio of 3.85 is 95.9% 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 Hardware industry, the median Current Ratio is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Electronic Industries's current Current Ratio is 3.85, which is 82% above median its own 10-year median of 2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Electronic Industries stock overvalued right now?
Based on GuruFocus' analysis, Formosa Electronic Industries (ROCO:8171) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$7.94, compared to a current price of NT$20.75 — trading 161.3% above its estimated fair value. The current Current Ratio is 3.85, which is 82% above median its 10-year median of 2.12 and 95.9% above the Hardware industry median of 1.97. Formosa Electronic Industries' overall GF Score™ is 38/100 with 7 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 Formosa Electronic Industries (ROCO:8171), the current Current Ratio is 3.85 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 Formosa Electronic Industries (ROCO:8171) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Electronic Industries stock appears to be overvalued.
The current stock price of NT$20.75 is trading 161.3% above its estimated GF Value™ of NT$7.94.
GuruFocus considers Formosa Electronic Industries to be Significantly Overvalued.
Key valuation signals for ROCO:8171:
Current Ratio: 3.85 (82% above median its 10-year median of 2.12)
GF Value™: NT$7.94 vs. price of NT$20.75 (161.3% above fair value)
Industry Position: 95.9% above the Hardware median (#487 of 2498)
No single metric tells the full story. See the ROCO:8171 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Electronic Industries Business Description
Formosa Electronic Industries Inc is engaged in the assembly, processing, manufacturing, trading, agent distribution, and trading of single-string parallel battery modules, mobile power supplies, wireless chargers, green energy battery modules, and distributed energy storage systems. The Company's other products include wireless chargers, power adapters, accessories, OEM, and green products.
38GF Score
Get the complete analysis for ROCO:8171
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