China Meheco Group CoSHSE:600056 +0.33%65 Current Ratio is 1.42 as of Mar. 2026, which is 8% below its 10-year median of 1.55. GuruFocus rates SHSE:600056 with a GF Score™ of 65/100 and a GF Value™ of ¥10.48 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 118 Medical Distribution companies, China Meheco Group Co ranks better than 54.24% 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. China Meheco Group Co's current ratio for the quarter that ended in Mar. 2026 was 1.42.
China Meheco Group Co has a current ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for China Meheco Group Co's Current Ratio or its related term are showing as below:
SHSE:600056'
s Current Ratio Range Over the Past 10 Years
Min: 1.38 Med: 1.55 Max: 1.75
Current: 1.42
During the past 13 years, China Meheco Group Co's highest Current Ratio was 1.75. The lowest was 1.38. And the median was 1.55.
SHSE:600056's Current Ratio is ranked better than 54.24% of 118
companies
in the Medical Distribution industry
Industry Median: 1.395
vs SHSE:600056: 1.42
China Meheco Group Co (SHSE:600056) 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 Meheco Group Co Current Ratio Related Terms
China Meheco Group Co Current Ratio Historical Data
* Premium members only.
The historical data trend for China Meheco Group Co's Current Ratio can be seen below:
* 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.
SHSE:600056 vs MCK, CAH, COR: Current Ratio Comparison
For the Medical Distribution subindustry, China Meheco Group Co'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 Meheco Group Co Current Ratio vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Meheco Group Co'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 Meheco Group Co (SHSE:600056) has a Current Ratio of 1.42 as of Mar. 2026. This is near median its historical median of 1.55. Over the past decade, China Meheco Group Co's Current Ratio has ranged from 1.38 to 1.75. According to the industry distribution chart, China Meheco Group Co ranks #54 out of 118 companies in the Medical Distribution industry, placing it in the top 45.8%.
Is China Meheco Group Co's Current Ratio too high?
China Meheco Group Co's current Current Ratio of 1.42 is near median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 1.75. The Medical Distribution industry median Current Ratio is 1.40. China Meheco Group Co's value of 1.42 is 1.8% above this industry median. Based on the distribution chart, China Meheco Group Co ranks #54 out of 118 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, China Meheco Group Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's Current Ratio compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China Meheco Group Co ranks #54 out of 118 companies for Current Ratio. This puts China Meheco Group Co in the upper half of its industry. The industry median Current Ratio is 1.40. China Meheco Group Co's value of 1.42 is 1.8% above this benchmark. Historically, China Meheco Group Co's own Current Ratio has ranged from 1.38 to 1.75 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 1.40, China Meheco Group Co 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 Medical Distribution company?
The median Current Ratio among Medical Distribution companies is 1.40, based on 118 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 Meheco Group Co's current Current Ratio of 1.42 is 1.8% 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 Medical Distribution industry, the median Current Ratio is 1.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current Current Ratio is 1.42, which is near median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.48, compared to a current price of ¥9.05 — trading 13.6% below its estimated fair value. The current Current Ratio is 1.42, which is near median its 10-year median of 1.55 and 1.8% above the Medical Distribution industry median of 1.40. China Meheco Group Co's overall GF Score™ is 65/100 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 Meheco Group Co (SHSE:600056), the current Current Ratio is 1.42 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥9.05 is trading 13.6% below its estimated GF Value™ of ¥10.48.
GuruFocus considers China Meheco Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600056:
Current Ratio: 1.42 (near median its 10-year median of 1.55)
GF Value™: ¥10.48 vs. price of ¥9.05 (13.6% below fair value)
Industry Position: 1.8% above the Medical Distribution median (#54 of 118)
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
65GF Score
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