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Shandong Donghong Pipe Industry Co has a current ratio of 3.03. 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.
SHSE:603856'
s Current Ratio Range Over the Past 10 Years
Min: 1.76 Med: 2.72 Max: 6.07
Current: 3.03
During the past 13 years, Shandong Donghong Pipe Industry Co's highest Current Ratio was 6.07. The lowest was 1.76. And the median was 2.72.
SHSE:603856's Current Ratio is ranked better than 84.67% of 1787
companies
in the Construction industry
Industry Median: 1.58
vs SHSE:603856: 3.03
Shandong Donghong Pipe Industry Co (SHSE:603856) 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 Donghong Pipe Industry Co Current Ratio Related Terms
Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co Current Ratio Chart
SHSE:603856 vs TT, JCI, CARR: Current Ratio Comparison
For the Building Products & Equipment subindustry, Shandong Donghong Pipe Industry 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 Donghong Pipe Industry Co Current Ratio vs Construction Industry
For the Construction industry and Industrials sector, Shandong Donghong Pipe Industry Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co (SHSE:603856) has a Current Ratio of 3.03 as of Mar. 2026. This is 11% above median its historical median of 2.72. Over the past decade, Shandong Donghong Pipe Industry Co's Current Ratio has ranged from 1.76 to 6.07. According to the industry distribution chart, Shandong Donghong Pipe Industry Co ranks #274 out of 1787 companies in the Construction industry, placing it in the top 15.3%.
Is Shandong Donghong Pipe Industry Co's Current Ratio too high?
Shandong Donghong Pipe Industry Co's current Current Ratio of 3.03 is 11% above median its 10-year median of 2.72. Over the past 10 years, this metric has ranged from a low of 1.76 to a high of 6.07. The Construction industry median Current Ratio is 1.58. Shandong Donghong Pipe Industry Co's value of 3.03 is 91.8% above this industry median. Based on the distribution chart, Shandong Donghong Pipe Industry Co ranks #274 out of 1787 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Shandong Donghong Pipe Industry Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Donghong Pipe Industry Co's Current Ratio compare to TT and JCI?
According to the Construction industry distribution chart, Shandong Donghong Pipe Industry Co ranks #274 out of 1787 companies for Current Ratio. This places Shandong Donghong Pipe Industry Co in the top 15% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.58. Shandong Donghong Pipe Industry Co's value of 3.03 is 91.8% above this benchmark. Historically, Shandong Donghong Pipe Industry Co's own Current Ratio has ranged from 1.76 to 6.07 over the past decade. While the company's 10-year median is 2.72 vs. the industry median of 1.58, Shandong Donghong Pipe Industry 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 Construction company?
The median Current Ratio among Construction companies is 1.58, based on 1,787 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 Donghong Pipe Industry Co's current Current Ratio of 3.03 is 91.8% 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 Construction industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Donghong Pipe Industry Co's current Current Ratio is 3.03, which is 11% above median its own 10-year median of 2.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Donghong Pipe Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co (SHSE:603856) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥9.28, compared to a current price of ¥11.34 — trading 22.2% above its estimated fair value. The current Current Ratio is 3.03, which is 11% above median its 10-year median of 2.72 and 91.8% above the Construction industry median of 1.58. Shandong Donghong Pipe Industry Co's overall GF Score™ is 79/100 with 5 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 Donghong Pipe Industry Co (SHSE:603856), the current Current Ratio is 3.03 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 Donghong Pipe Industry Co (SHSE:603856) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co stock appears to be overvalued.
The current stock price of ¥11.34 is trading 22.2% above its estimated GF Value™ of ¥9.28.
GuruFocus considers Shandong Donghong Pipe Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:603856:
Current Ratio: 3.03 (11% above median its 10-year median of 2.72)
GF Value™: ¥9.28 vs. price of ¥11.34 (22.2% above fair value)
Industry Position: 91.8% above the Construction median (#274 of 1787)
No single metric tells the full story. See the SHSE:603856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Donghong Pipe Industry Co Business Description
Shandong Donghong Pipe Industry Co Ltd is engaged in the research and development, manufacturing and service of an intelligent pipeline system in China. Its products line includes steel mesh skeleton plastic composite pipes, super wear-resisting composite pipes, HDPE gas pipes, plastic-coated steel pipes, polyethylene pipes for underground coal mining, and other products.
79GF Score
Get the complete analysis for SHSE:603856
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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