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Longyan Zhuoyue New Energy Co has a current ratio of 6.66. 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 Longyan Zhuoyue New Energy Co's Current Ratio or its related term are showing as below:
SHSE:688196'
s Current Ratio Range Over the Past 10 Years
Min: 3.08 Med: 9.03 Max: 44.73
Current: 6.66
During the past 13 years, Longyan Zhuoyue New Energy Co's highest Current Ratio was 44.73. The lowest was 3.08. And the median was 9.03.
SHSE:688196's Current Ratio is ranked better than 91.78% of 1606
companies
in the Chemicals industry
Industry Median: 1.89
vs SHSE:688196: 6.66
Longyan Zhuoyue New Energy Co (SHSE:688196) 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.
Longyan Zhuoyue New Energy Co Current Ratio Related Terms
Longyan Zhuoyue New Energy 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.
SHSE:688196 vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Longyan Zhuoyue New Energy 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.
Longyan Zhuoyue New Energy Co Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Longyan Zhuoyue New Energy Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Longyan Zhuoyue New Energy 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.
Longyan Zhuoyue New Energy Co (SHSE:688196) has a Current Ratio of 6.66 as of Mar. 2026. This is 26% below median its historical median of 9.03. Over the past decade, Longyan Zhuoyue New Energy Co's Current Ratio has ranged from 3.08 to 44.73. According to the industry distribution chart, Longyan Zhuoyue New Energy Co ranks #132 out of 1606 companies in the Chemicals industry, placing it in the top 8.2%.
Is Longyan Zhuoyue New Energy Co's Current Ratio too high?
Longyan Zhuoyue New Energy Co's current Current Ratio of 6.66 is 26% below median its 10-year median of 9.03. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 44.73. The Chemicals industry median Current Ratio is 1.89. Longyan Zhuoyue New Energy Co's value of 6.66 is 252.4% above this industry median. Based on the distribution chart, Longyan Zhuoyue New Energy Co ranks #132 out of 1606 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Longyan Zhuoyue New Energy Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Longyan Zhuoyue New Energy Co's Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Longyan Zhuoyue New Energy Co ranks #132 out of 1606 companies for Current Ratio. This places Longyan Zhuoyue New Energy Co in the top 8% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.89. Longyan Zhuoyue New Energy Co's value of 6.66 is 252.4% above this benchmark. Historically, Longyan Zhuoyue New Energy Co's own Current Ratio has ranged from 3.08 to 44.73 over the past decade. While the company's 10-year median is 9.03 vs. the industry median of 1.89, Longyan Zhuoyue New Energy 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,606 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. Longyan Zhuoyue New Energy Co's current Current Ratio of 6.66 is 252.4% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longyan Zhuoyue New Energy Co's current Current Ratio is 6.66, which is 26% below median its own 10-year median of 9.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longyan Zhuoyue New Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Longyan Zhuoyue New Energy Co (SHSE:688196) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥35.50, compared to a current price of ¥31.90 — trading 10.1% below its estimated fair value. The current Current Ratio is 6.66, which is 26% below median its 10-year median of 9.03 and 252.4% above the Chemicals industry median of 1.89. Longyan Zhuoyue New Energy Co's overall GF Score™ is 85/100 with 10 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 Longyan Zhuoyue New Energy Co (SHSE:688196), the current Current Ratio is 6.66 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 Longyan Zhuoyue New Energy Co (SHSE:688196) Overvalued in 2026?
Based on GuruFocus' analysis, Longyan Zhuoyue New Energy Co stock appears to be undervalued.
The current stock price of ¥31.90 is trading 10.1% below its estimated GF Value™ of ¥35.50.
GuruFocus considers Longyan Zhuoyue New Energy Co to be Modestly Undervalued.
Key valuation signals for SHSE:688196:
Current Ratio: 6.66 (26% below median its 10-year median of 9.03)
GF Value™: ¥35.50 vs. price of ¥31.90 (10.1% below fair value)
Industry Position: 252.4% above the Chemicals median (#132 of 1606)
No single metric tells the full story. See the SHSE:688196 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longyan Zhuoyue New Energy Co Business Description
Longyan Zhuoyue New Energy Co Ltd is a renewable company focusing on the manufacturing of biomass products, including biodiesel of UCOME, BGME, and PME, derivative industrial glycerin, biomass plasticizers, waterborne alkyd resin, and etc.
85GF Score
Get the complete analysis for SHSE:688196
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