Hangzhou XZB Tech Co (SHSE:603040) Current Ratio: 5.01 (As of Mar. 2026) — 21% Below Median

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SHSE:603040 Hangzhou XZB Tech Co Ltd SHSE:603040
84 GF Score
Price ¥52.20
GF Value ¥24.04
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Hangzhou XZB Tech Co Current Ratio?

Hangzhou XZB Tech Co SHSE:603040 +1.06% 84 Current Ratio is 5.01 as of Mar. 2026, which is 21% below its 10-year median of 6.37. GuruFocus rates SHSE:603040 with a GF Score™ of 84/100 and a GF Value™ of ¥24.04 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Hangzhou XZB Tech Co ranks better than 93.54% 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. Hangzhou XZB Tech Co's current ratio for the quarter that ended in Mar. 2026 was 5.01.

Hangzhou XZB Tech Co has a current ratio of 5.01. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.

The historical rank and industry rank for Hangzhou XZB Tech Co's Current Ratio or its related term are showing as below:

SHSE:603040' s Current Ratio Range Over the Past 10 Years
Min: 4.04   Med: 6.37   Max: 18.75
Current: 5.01

During the past 13 years, Hangzhou XZB Tech Co's highest Current Ratio was 18.75. The lowest was 4.04. And the median was 6.37.

SHSE:603040's Current Ratio is ranked better than
93.54% of 1331 companies
in the Vehicles & Parts industry
Industry Median: 1.53 vs SHSE:603040: 5.01

Hangzhou XZB Tech Co  (SHSE:603040) 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.


Hangzhou XZB Tech Co Current Ratio Related Terms


Hangzhou XZB Tech Co Current Ratio Historical Data

* Premium members only.

The historical data trend for Hangzhou XZB Tech 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.

Hangzhou XZB Tech Co Current Ratio Chart

Hangzhou XZB Tech 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 5.14 5.75 4.26 4.04 4.49

Hangzhou XZB Tech 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 4.64 4.35 4.62 4.49 5.01

SHSE:603040 vs ORLY, AZO: Current Ratio Comparison

For the Auto Parts subindustry, Hangzhou XZB Tech 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.


Hangzhou XZB Tech Co Current Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Hangzhou XZB Tech Co's Current Ratio distribution charts can be found below:

* The bar in red indicates where Hangzhou XZB Tech Co's Current Ratio falls into.


SHSE:603040
84GF Score
Hangzhou XZB Tech Co Ltd SHSE:603040
Current Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hangzhou XZB Tech 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.

Hangzhou XZB Tech 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 )
=946.115/210.785
=4.49

Hangzhou XZB Tech 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 )
=1020.239/203.727
=5.01

* 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 5.01 mean?
Hangzhou XZB Tech Co (SHSE:603040) has a Current Ratio of 5.01 as of Mar. 2026. This is 21% below median its historical median of 6.37. Over the past decade, Hangzhou XZB Tech Co's Current Ratio has ranged from 4.04 to 18.75. According to the industry distribution chart, Hangzhou XZB Tech Co ranks #86 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 6.5%.
Is Hangzhou XZB Tech Co's Current Ratio too high?
Hangzhou XZB Tech Co's current Current Ratio of 5.01 is 21% below median its 10-year median of 6.37. Over the past 10 years, this metric has ranged from a low of 4.04 to a high of 18.75. The Vehicles & Parts industry median Current Ratio is 1.53. Hangzhou XZB Tech Co's value of 5.01 is 227.5% above this industry median. Based on the distribution chart, Hangzhou XZB Tech Co ranks #86 out of 1331 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hangzhou XZB Tech Co has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou XZB Tech Co's Current Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hangzhou XZB Tech Co ranks #86 out of 1331 companies for Current Ratio. This places Hangzhou XZB Tech Co in the top 7% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.53. Hangzhou XZB Tech Co's value of 5.01 is 227.5% above this benchmark. Historically, Hangzhou XZB Tech Co's own Current Ratio has ranged from 4.04 to 18.75 over the past decade. While the company's 10-year median is 6.37 vs. the industry median of 1.53, Hangzhou XZB Tech 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 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. Hangzhou XZB Tech Co's current Current Ratio of 5.01 is 227.5% 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 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. Hangzhou XZB Tech Co's current Current Ratio is 5.01, which is 21% below median its own 10-year median of 6.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou XZB Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co (SHSE:603040) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥24.04, compared to a current price of ¥52.20 — trading 117.1% above its estimated fair value. The current Current Ratio is 5.01, which is 21% below median its 10-year median of 6.37 and 227.5% above the Vehicles & Parts industry median of 1.53. Hangzhou XZB Tech Co's overall GF Score™ is 84/100 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 Hangzhou XZB Tech Co (SHSE:603040), the current Current Ratio is 5.01 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 Hangzhou XZB Tech Co (SHSE:603040) Overvalued in 2026?

Based on GuruFocus' analysis, Hangzhou XZB Tech Co stock appears to be overvalued. The current stock price of ¥52.20 is trading 117.1% above its estimated GF Value™ of ¥24.04. GuruFocus considers Hangzhou XZB Tech Co to be Significantly Overvalued.

Key valuation signals for SHSE:603040:

  • Current Ratio: 5.01 (21% below median its 10-year median of 6.37)
  • GF Value™: ¥24.04 vs. price of ¥52.20 (117.1% above fair value)
  • GF Score™: 84/100 with 2 warning signs
  • Industry Position: 227.5% above the Vehicles & Parts median (#86 of 1331)

No single metric tells the full story. See the SHSE:603040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hangzhou XZB Tech Co Business Description

Address No.18 Longtan Road, Building 1-5, Yuhang District, Zhejiang Province, Hangzhou, CHN, 311121
Hangzhou XZB Tech Co Ltd is a China based company engaged in the research and development of valve train systems and parts manufacturing in car industry. The products offered by the company includes valve cotters (collets), valve spring retainers, hydraulic lash adjusters and finger followers, push rods and tappets for heavy-duty diesel engines. In addition, the company also produces precision cold-forming components together with good service for power tools, household electrical appliance, aerospace, machinery and other applications.
84GF Score

Get the complete analysis for SHSE:603040

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

¥52.20
Price
¥24.04
GF Value