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Guangdong Tianan New Material Co (SHSE:603725) 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.
Guangdong Tianan New Material Co Current Ratio Related Terms
Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co Current Ratio Chart
For the Chemicals subindustry, Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Guangdong Tianan New Material Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Guangdong Tianan New Material 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.
Guangdong Tianan New Material Co (SHSE:603725) has a Current Ratio of 1.11 as of Mar. 2026. This is near median its historical median of 1.06. Over the past decade, Guangdong Tianan New Material Co's Current Ratio has ranged from 0.89 to 1.78. According to the industry distribution chart, Guangdong Tianan New Material Co ranks #1304 out of 1607 companies in the Chemicals industry, placing it in the top 81.1%.
Is Guangdong Tianan New Material Co's Current Ratio too high?
Guangdong Tianan New Material Co's current Current Ratio of 1.11 is near median its 10-year median of 1.06. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 1.78. The Chemicals industry median Current Ratio is 1.87. Guangdong Tianan New Material Co's value of 1.11 is 40.6% below this industry median. Based on the distribution chart, Guangdong Tianan New Material Co ranks #1304 out of 1607 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Guangdong Tianan New Material Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Tianan New Material Co's Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Guangdong Tianan New Material Co ranks #1304 out of 1607 companies for Current Ratio. This places Guangdong Tianan New Material Co in the lower half of its industry. The industry median Current Ratio is 1.87. Guangdong Tianan New Material Co's value of 1.11 is 40.6% below this benchmark. Historically, Guangdong Tianan New Material Co's own Current Ratio has ranged from 0.89 to 1.78 over the past decade. While the company's 10-year median is 1.06 vs. the industry median of 1.87, Guangdong Tianan New Material 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 1.87, based on 1,607 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. Guangdong Tianan New Material Co's current Current Ratio of 1.11 is 40.6% 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 Chemicals industry, the median Current Ratio is 1.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Tianan New Material Co's current Current Ratio is 1.11, which is near median its own 10-year median of 1.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Tianan New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co (SHSE:603725) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥7.13, compared to a current price of ¥10.14 — trading 42.2% above its estimated fair value. The current Current Ratio is 1.11, which is near median its 10-year median of 1.06 and 40.6% below the Chemicals industry median of 1.87. Guangdong Tianan New Material Co's overall GF Score™ is 69/100 with 3 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 Guangdong Tianan New Material Co (SHSE:603725), the current Current Ratio is 1.11 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 Guangdong Tianan New Material Co (SHSE:603725) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Tianan New Material Co stock appears to be overvalued.
The current stock price of ¥10.14 is trading 42.2% above its estimated GF Value™ of ¥7.13.
GuruFocus considers Guangdong Tianan New Material Co to be Significantly Overvalued.
Key valuation signals for SHSE:603725:
Current Ratio: 1.11 (near median its 10-year median of 1.06)
GF Value™: ¥7.13 vs. price of ¥10.14 (42.2% above fair value)
Industry Position: 40.6% below the Chemicals median (#1304 of 1607)
No single metric tells the full story. See the SHSE:603725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Tianan New Material Co Ltd is a manufacturer of environmentally friendly high-end decorative materials and automotive interior materials in China. Its primary products include home decoration finishes, automotive interior finishes, films, and artificial leather products, such as polyvinyl chloride (PVC), polypropylene (PP), and thermoplastic polyolefin (TPO), and other polymer surface materials.
69GF Score
Get the complete analysis for SHSE:603725
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