SHSE:600426's Current Ratio is ranked worse than 53.87% of 1604
companies
in the Chemicals industry
Industry Median: 1.89
vs SHSE:600426: 1.78
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) 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.
Shandong Hualu-hengsheng Chemical Co Current Ratio Related Terms
Shandong Hualu-hengsheng Chemical Co 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.
Shandong Hualu-hengsheng Chemical Co Current Ratio Chart
For the Chemicals subindustry, Shandong Hualu-hengsheng Chemical 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.
Shandong Hualu-hengsheng Chemical Co Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shandong Hualu-hengsheng Chemical Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shandong Hualu-hengsheng Chemical 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.
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) has a Current Ratio of 1.78 as of Mar. 2026. This is 25% above median its historical median of 1.42. Over the past decade, Shandong Hualu-hengsheng Chemical Co's Current Ratio has ranged from 0.58 to 2.66. According to the industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #864 out of 1604 companies in the Chemicals industry, placing it in the top 53.9%.
Is Shandong Hualu-hengsheng Chemical Co's Current Ratio too high?
Shandong Hualu-hengsheng Chemical Co's current Current Ratio of 1.78 is 25% above median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 2.66. The Chemicals industry median Current Ratio is 1.89. Shandong Hualu-hengsheng Chemical Co's value of 1.78 is 5.8% below this industry median. Based on the distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #864 out of 1604 companies in the Chemicals industry, which is below the industry midpoint. Overall, Shandong Hualu-hengsheng Chemical Co has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Hualu-hengsheng Chemical Co's Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #864 out of 1604 companies for Current Ratio. This places Shandong Hualu-hengsheng Chemical Co in the lower half of its industry. The industry median Current Ratio is 1.89. Shandong Hualu-hengsheng Chemical Co's value of 1.78 is 5.8% below this benchmark. Historically, Shandong Hualu-hengsheng Chemical Co's own Current Ratio has ranged from 0.58 to 2.66 over the past decade. While the company's 10-year median is 1.42 vs. the industry median of 1.89, Shandong Hualu-hengsheng Chemical Co 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,604 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. Shandong Hualu-hengsheng Chemical Co's current Current Ratio of 1.78 is 5.8% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hualu-hengsheng Chemical Co's current Current Ratio is 1.78, which is 25% above median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hualu-hengsheng Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co (SHSE:600426) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥30.49, compared to a current price of ¥25.26 — trading 17.2% below its estimated fair value. The current Current Ratio is 1.78, which is 25% above median its 10-year median of 1.42 and 5.8% below the Chemicals industry median of 1.89. Shandong Hualu-hengsheng Chemical Co's overall GF Score™ is 96/100 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426), the current Current Ratio is 1.78 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co stock appears to be undervalued.
The current stock price of ¥25.26 is trading 17.2% below its estimated GF Value™ of ¥30.49.
GuruFocus considers Shandong Hualu-hengsheng Chemical Co to be Modestly Undervalued.
Key valuation signals for SHSE:600426:
Current Ratio: 1.78 (25% above median its 10-year median of 1.42)
GF Value™: ¥30.49 vs. price of ¥25.26 (17.2% below fair value)
Industry Position: 5.8% below the Chemicals median (#864 of 1604)
No single metric tells the full story. See the SHSE:600426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hualu-hengsheng Chemical Co Business Description
Shandong Hualu-Hengsheng Chemical Co Ltd is engaged in the production and sale of chemical products and chemical fertilizers, as well as power generation and heating businesses. The company's main products include new energy and new materials related products such as caprolactam, adipic acid, and others, chemical fertilizers such as urea and others, organic amines such as dimethylformamide (DMF), monomethylamine, and others, and acetic acid and derivatives products such as acetic acid, acetic anhydride, and others.
96GF Score
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