Shandong Linglong Tyre Co (SHSE:601966) Current Ratio: 1.00 (As of Mar. 2026) — 15% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:601966 Shandong Linglong Tyre Co Ltd SHSE:601966
69 GF Score
Price ¥11.07
GF Value ¥20.23
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Shandong Linglong Tyre Co Current Ratio?

Shandong Linglong Tyre Co SHSE:601966 +1.84% 69 Current Ratio is 1.00 as of Mar. 2026, which is 15% above its 10-year median of 0.87. GuruFocus rates SHSE:601966 with a GF Score™ of 69/100 and a GF Value™ of ¥20.23 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Shandong Linglong Tyre Co ranks worse than 83.25% 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. Shandong Linglong Tyre Co's current ratio for the quarter that ended in Mar. 2026 was 1.00.

Shandong Linglong Tyre Co has a current ratio of 1.00. It generally indicates good short-term financial strength.

The historical rank and industry rank for Shandong Linglong Tyre Co's Current Ratio or its related term are showing as below:

SHSE:601966' s Current Ratio Range Over the Past 10 Years
Min: 0.72   Med: 0.87   Max: 1.14
Current: 1

During the past 13 years, Shandong Linglong Tyre Co's highest Current Ratio was 1.14. The lowest was 0.72. And the median was 0.87.

SHSE:601966's Current Ratio is ranked worse than
83.25% of 1331 companies
in the Vehicles & Parts industry
Industry Median: 1.53 vs SHSE:601966: 1.00

Shandong Linglong Tyre Co  (SHSE:601966) 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 Linglong Tyre Co Current Ratio Related Terms


Shandong Linglong Tyre Co Current Ratio Historical Data

* Premium members only.

The historical data trend for Shandong Linglong Tyre 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.

Shandong Linglong Tyre Co Current Ratio Chart

Shandong Linglong Tyre Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Current Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.72 0.77 0.74 0.80 0.89

Shandong Linglong Tyre Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.78 0.78 0.83 0.89 1.00

SHSE:601966 vs ORLY, AZO: Current Ratio Comparison

For the Auto Parts subindustry, Shandong Linglong Tyre 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 Linglong Tyre Co Current Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Shandong Linglong Tyre Co's Current Ratio distribution charts can be found below:

* The bar in red indicates where Shandong Linglong Tyre Co's Current Ratio falls into.


SHSE:601966
69GF Score
Shandong Linglong Tyre Co Ltd SHSE:601966
Current Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shandong Linglong Tyre Co Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Shandong Linglong Tyre Co's Current Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Current Ratio (A: Dec. 2025 )=Total Current Assets (A: Dec. 2025 )/Total Current Liabilities (A: Dec. 2025 )
=15703.779/17648.117
=0.89

Shandong Linglong Tyre Co's Current Ratio for the quarter that ended in Mar. 2026 is calculated as

Current Ratio (Q: Mar. 2026 )=Total Current Assets (Q: Mar. 2026 )/Total Current Liabilities (Q: Mar. 2026 )
=16379.917/16428.833
=1.00

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 1.00 mean?
Shandong Linglong Tyre Co (SHSE:601966) has a Current Ratio of 1.00 as of Mar. 2026. This is 15% above median its historical median of 0.87. Over the past decade, Shandong Linglong Tyre Co's Current Ratio has ranged from 0.72 to 1.14. According to the industry distribution chart, Shandong Linglong Tyre Co ranks #1108 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 83.2%.
Is Shandong Linglong Tyre Co's Current Ratio too high?
Shandong Linglong Tyre Co's current Current Ratio of 1.00 is 15% above median its 10-year median of 0.87. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 1.14. The Vehicles & Parts industry median Current Ratio is 1.53. Shandong Linglong Tyre Co's value of 1.00 is 34.6% below this industry median. Based on the distribution chart, Shandong Linglong Tyre Co ranks #1108 out of 1331 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Shandong Linglong Tyre Co has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shandong Linglong Tyre Co's Current Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Shandong Linglong Tyre Co ranks #1108 out of 1331 companies for Current Ratio. This places Shandong Linglong Tyre Co in the lower half of its industry. The industry median Current Ratio is 1.53. Shandong Linglong Tyre Co's value of 1.00 is 34.6% below this benchmark. Historically, Shandong Linglong Tyre Co's own Current Ratio has ranged from 0.72 to 1.14 over the past decade. While the company's 10-year median is 0.87 vs. the industry median of 1.53, Shandong Linglong Tyre 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,331 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 Linglong Tyre Co's current Current Ratio of 1.00 is 34.6% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Linglong Tyre Co's current Current Ratio is 1.00, which is 15% above median its own 10-year median of 0.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Linglong Tyre Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Linglong Tyre Co (SHSE:601966) is currently considered Possible Value Trap. The stock's GF Value™ is ¥20.23, compared to a current price of ¥11.07 — trading 45.3% below its estimated fair value. The current Current Ratio is 1.00, which is 15% above median its 10-year median of 0.87 and 34.6% below the Vehicles & Parts industry median of 1.53. Shandong Linglong Tyre Co's overall GF Score™ is 69/100 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 Linglong Tyre Co (SHSE:601966), the current Current Ratio is 1.00 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 Linglong Tyre Co (SHSE:601966) Overvalued in 2026?

Based on GuruFocus' analysis, Shandong Linglong Tyre Co stock appears to be undervalued. The current stock price of ¥11.07 is trading 45.3% below its estimated GF Value™ of ¥20.23. GuruFocus considers Shandong Linglong Tyre Co to be Possible Value Trap.

Key valuation signals for SHSE:601966:

  • Current Ratio: 1.00 (15% above median its 10-year median of 0.87)
  • GF Value™: ¥20.23 vs. price of ¥11.07 (45.3% below fair value)
  • GF Score™: 69/100 with 6 warning signs
  • Industry Position: 34.6% below the Vehicles & Parts median (#1108 of 1331)

No single metric tells the full story. See the SHSE:601966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shandong Linglong Tyre Co Business Description

Address No. 777, Jinlong Road, Shandong Province, Zhaoyuan, CHN, 265406
Shandong Linglong Tyre Co Ltd is a China-based tire manufacturing company engaged in the business of manufacturing and selling tires. Its product portfolio comprises of passenger car radial tires, light truck radial tires, truck and bus radial tires, specialty tires, winter tires, SUV tires, and others. It offers tire products under the brands Linglong, LEAO, GREEN MAX, ATLAS, INFINITY, CROSSWIND, and EVOLUXX.
69GF Score

Get the complete analysis for SHSE:601966

Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥11.07
Price
¥20.23
GF Value