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SHSE:600771's Current Ratio is ranked better than 54.7% of 1000
companies
in the Drug Manufacturers industry
Industry Median: 2
vs SHSE:600771: 2.20
GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) 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.
GuangYuYuan Chinese Herbal Medicine Co Current Ratio Related Terms
GuangYuYuan Chinese Herbal Medicine 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.
GuangYuYuan Chinese Herbal Medicine Co Current Ratio Chart
GuangYuYuan Chinese Herbal Medicine Co Annual Data
SHSE:600771 vs LLY, JNJ, ABBV: Current Ratio Comparison
For the Drug Manufacturers - General subindustry, GuangYuYuan Chinese Herbal Medicine 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.
GuangYuYuan Chinese Herbal Medicine Co Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, GuangYuYuan Chinese Herbal Medicine Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where GuangYuYuan Chinese Herbal Medicine 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.
GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) has a Current Ratio of 2.20 as of Mar. 2026. This is near median its historical median of 2.28. Over the past decade, GuangYuYuan Chinese Herbal Medicine Co's Current Ratio has ranged from 1.49 to 5.28. According to the industry distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #453 out of 1000 companies in the Drug Manufacturers industry, placing it in the top 45.3%.
Is GuangYuYuan Chinese Herbal Medicine Co's Current Ratio too high?
GuangYuYuan Chinese Herbal Medicine Co's current Current Ratio of 2.20 is near median its 10-year median of 2.28. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 5.28. The Drug Manufacturers industry median Current Ratio is 2.00. GuangYuYuan Chinese Herbal Medicine Co's value of 2.20 is 10% above this industry median. Based on the distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #453 out of 1000 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, GuangYuYuan Chinese Herbal Medicine Co has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GuangYuYuan Chinese Herbal Medicine Co's Current Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, GuangYuYuan Chinese Herbal Medicine Co ranks #453 out of 1000 companies for Current Ratio. This puts GuangYuYuan Chinese Herbal Medicine Co in the upper half of its industry. The industry median Current Ratio is 2.00. GuangYuYuan Chinese Herbal Medicine Co's value of 2.20 is 10% above this benchmark. Historically, GuangYuYuan Chinese Herbal Medicine Co's own Current Ratio has ranged from 1.49 to 5.28 over the past decade. While the company's 10-year median is 2.28 vs. the industry median of 2.00, GuangYuYuan Chinese Herbal Medicine 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 1,000 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. GuangYuYuan Chinese Herbal Medicine Co's current Current Ratio of 2.20 is 10% 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 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. GuangYuYuan Chinese Herbal Medicine Co's current Current Ratio is 2.20, which is near median its own 10-year median of 2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GuangYuYuan Chinese Herbal Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥24.06, compared to a current price of ¥15.04 — trading 37.5% below its estimated fair value. The current Current Ratio is 2.20, which is near median its 10-year median of 2.28 and 10% above the Drug Manufacturers industry median of 2.00. GuangYuYuan Chinese Herbal Medicine Co's overall GF Score™ is 52/100 with 1 warning sign 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 GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771), the current Current Ratio is 2.20 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 GuangYuYuan Chinese Herbal Medicine Co (SHSE:600771) Overvalued in 2026?
Based on GuruFocus' analysis, GuangYuYuan Chinese Herbal Medicine Co stock appears to be undervalued.
The current stock price of ¥15.04 is trading 37.5% below its estimated GF Value™ of ¥24.06.
GuruFocus considers GuangYuYuan Chinese Herbal Medicine Co to be Significantly Undervalued.
Key valuation signals for SHSE:600771:
Current Ratio: 2.20 (near median its 10-year median of 2.28)
GF Value™: ¥24.06 vs. price of ¥15.04 (37.5% below fair value)
Industry Position: 10% above the Drug Manufacturers median (#453 of 1000)
No single metric tells the full story. See the SHSE:600771 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GuangYuYuan Chinese Herbal Medicine Co Business Description
GuangYuYuan Chinese Herbal Medicine Co Ltd distributes pharmaceutical products. Its products include far plate turtle age wine bottle, niuhuang qingxin pills, boutique angong niuhuang wan, modified turtle age wine, ding kundan, and many more.
52GF Score
Get the complete analysis for SHSE:600771
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