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SHSE:688186's Current Ratio is ranked worse than 59.46% of 634
companies
in the Steel industry
Industry Median: 1.63
vs SHSE:688186: 1.41
Zhangjiagang Guangda Special Material Co (SHSE:688186) 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.
Zhangjiagang Guangda Special Material Co Current Ratio Related Terms
Zhangjiagang Guangda Special 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.
Zhangjiagang Guangda Special Material Co Current Ratio Chart
Zhangjiagang Guangda Special Material Co Annual Data
SHSE:688186 vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Zhangjiagang Guangda Special 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.
Zhangjiagang Guangda Special Material Co Current Ratio vs Steel Industry
* 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.
Zhangjiagang Guangda Special Material Co (SHSE:688186) has a Current Ratio of 1.41 as of Mar. 2026. This is near median its historical median of 1.35. Over the past decade, Zhangjiagang Guangda Special Material Co's Current Ratio has ranged from 0.83 to 1.74. According to the industry distribution chart, Zhangjiagang Guangda Special Material Co ranks #377 out of 634 companies in the Steel industry, placing it in the top 59.5%.
Is Zhangjiagang Guangda Special Material Co's Current Ratio too high?
Zhangjiagang Guangda Special Material Co's current Current Ratio of 1.41 is near median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 1.74. The Steel industry median Current Ratio is 1.63. Zhangjiagang Guangda Special Material Co's value of 1.41 is 13.5% below this industry median. Based on the distribution chart, Zhangjiagang Guangda Special Material Co ranks #377 out of 634 companies in the Steel industry, which is below the industry midpoint. Overall, Zhangjiagang Guangda Special Material 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 Zhangjiagang Guangda Special Material Co's Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Zhangjiagang Guangda Special Material Co ranks #377 out of 634 companies for Current Ratio. This places Zhangjiagang Guangda Special Material Co in the lower half of its industry. The industry median Current Ratio is 1.63. Zhangjiagang Guangda Special Material Co's value of 1.41 is 13.5% below this benchmark. Historically, Zhangjiagang Guangda Special Material Co's own Current Ratio has ranged from 0.83 to 1.74 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 1.63, Zhangjiagang Guangda Special 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 Steel company?
The median Current Ratio among Steel companies is 1.63, based on 634 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. Zhangjiagang Guangda Special Material Co's current Current Ratio of 1.41 is 13.5% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhangjiagang Guangda Special Material Co's current Current Ratio is 1.41, which is near median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhangjiagang Guangda Special Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhangjiagang Guangda Special Material Co (SHSE:688186) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.61, compared to a current price of ¥13.57 — trading 40% below its estimated fair value. The current Current Ratio is 1.41, which is near median its 10-year median of 1.35 and 13.5% below the Steel industry median of 1.63. Zhangjiagang Guangda Special Material Co's overall GF Score™ is 69/100 with 9 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 Zhangjiagang Guangda Special Material Co (SHSE:688186), the current Current Ratio is 1.41 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 Zhangjiagang Guangda Special Material Co (SHSE:688186) Overvalued in 2026?
Based on GuruFocus' analysis, Zhangjiagang Guangda Special Material Co stock appears to be undervalued.
The current stock price of ¥13.57 is trading 40% below its estimated GF Value™ of ¥22.61.
GuruFocus considers Zhangjiagang Guangda Special Material Co to be Possible Value Trap.
Key valuation signals for SHSE:688186:
Current Ratio: 1.41 (near median its 10-year median of 1.35)
GF Value™: ¥22.61 vs. price of ¥13.57 (40% below fair value)
Industry Position: 13.5% below the Steel median (#377 of 634)
No single metric tells the full story. See the SHSE:688186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhangjiagang Guangda Special Material Co Business Description
Zhangjiagang Guangda Special Material Co Ltd is engaged in production and sale of special steel materials. The company's products include various types of castings and forgings and machine accessories: such as forged round bar, die and tool steel, wind power spindle, heavy load gear motor shaft, high pressure boiler pipe, roller, oil mechanical driller, tube-shaped forging, die block, ring forging, disk-shaped forging and all kinds of abnormal forgings. Its products are used in various industries such as wind power, chemical engineering, machinery, automobile, vessel, power station, metallurgy, mining and petrochemical.
69GF Score
Get the complete analysis for SHSE:688186
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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