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Kangmei Pharmaceutical CoSHSE:600518 48 Current Ratio is 1.27 as of Mar. 2026, which is 24% below its 10-year median of 1.67. GuruFocus rates SHSE:600518 with a GF Score™ of 48/100 and a GF Value™ of ¥1.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 999 Drug Manufacturers companies, Kangmei Pharmaceutical Co ranks worse than 73.17% 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. Kangmei Pharmaceutical Co's current ratio for the quarter that ended in Mar. 2026 was 1.27.
Kangmei Pharmaceutical Co has a current ratio of 1.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kangmei Pharmaceutical Co's Current Ratio or its related term are showing as below:
SHSE:600518'
s Current Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.67 Max: 4.12
Current: 1.27
During the past 13 years, Kangmei Pharmaceutical Co's highest Current Ratio was 4.12. The lowest was 0.67. And the median was 1.67.
SHSE:600518's Current Ratio is ranked worse than 73.17% of 999
companies
in the Drug Manufacturers industry
Industry Median: 2
vs SHSE:600518: 1.27
Kangmei Pharmaceutical Co (SHSE:600518) 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.
Kangmei Pharmaceutical Co Current Ratio Related Terms
Kangmei Pharmaceutical 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Kangmei Pharmaceutical 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.
Kangmei Pharmaceutical Co Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kangmei Pharmaceutical Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kangmei Pharmaceutical 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.
Kangmei Pharmaceutical Co (SHSE:600518) has a Current Ratio of 1.27 as of Mar. 2026. This is 24% below median its historical median of 1.67. Over the past decade, Kangmei Pharmaceutical Co's Current Ratio has ranged from 0.67 to 4.12. According to the industry distribution chart, Kangmei Pharmaceutical Co ranks #731 out of 999 companies in the Drug Manufacturers industry, placing it in the top 73.2%.
Is Kangmei Pharmaceutical Co's Current Ratio too high?
Kangmei Pharmaceutical Co's current Current Ratio of 1.27 is 24% below median its 10-year median of 1.67. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 4.12. The Drug Manufacturers industry median Current Ratio is 2.00. Kangmei Pharmaceutical Co's value of 1.27 is 36.5% below this industry median. Based on the distribution chart, Kangmei Pharmaceutical Co ranks #731 out of 999 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Kangmei Pharmaceutical Co has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kangmei Pharmaceutical Co's Current Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Kangmei Pharmaceutical Co ranks #731 out of 999 companies for Current Ratio. This places Kangmei Pharmaceutical Co in the lower half of its industry. The industry median Current Ratio is 2.00. Kangmei Pharmaceutical Co's value of 1.27 is 36.5% below this benchmark. Historically, Kangmei Pharmaceutical Co's own Current Ratio has ranged from 0.67 to 4.12 over the past decade. While the company's 10-year median is 1.67 vs. the industry median of 2.00, Kangmei Pharmaceutical 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 999 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. Kangmei Pharmaceutical Co's current Current Ratio of 1.27 is 36.5% 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 Drug Manufacturers industry, the median Current Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kangmei Pharmaceutical Co's current Current Ratio is 1.27, which is 24% below median its own 10-year median of 1.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kangmei Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Kangmei Pharmaceutical Co (SHSE:600518) is currently considered Fairly Valued. The stock's GF Value™ is ¥1.46, compared to a current price of ¥1.35 — trading 7.5% below its estimated fair value. The current Current Ratio is 1.27, which is 24% below median its 10-year median of 1.67 and 36.5% below the Drug Manufacturers industry median of 2.00. Kangmei Pharmaceutical Co's overall GF Score™ is 48/100 with 2 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 Kangmei Pharmaceutical Co (SHSE:600518), the current Current Ratio is 1.27 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 Kangmei Pharmaceutical Co (SHSE:600518) Overvalued in 2026?
Based on GuruFocus' analysis, Kangmei Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥1.35 is trading 7.5% below its estimated GF Value™ of ¥1.46.
GuruFocus considers Kangmei Pharmaceutical Co to be Fairly Valued.
Key valuation signals for SHSE:600518:
Current Ratio: 1.27 (24% below median its 10-year median of 1.67)
GF Value™: ¥1.46 vs. price of ¥1.35 (7.5% below fair value)
Industry Position: 36.5% below the Drug Manufacturers median (#731 of 999)
No single metric tells the full story. See the SHSE:600518 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kangmei Pharmaceutical Co Ltd is a pharmaceutical company engaged in the trading of Chinese herbal medicines, production and sales of Chinese herbal medicine slices, Chinese patent medicine preparations, health foods, chemical drugs, and medical devices, modern pharmaceutical logistics system. The company is also engaged in medical equipment, property leasing and sales, and other services.
48GF Score
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