China Southern Power Grid Technology Co has a current ratio of 3.02. 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:688248's Current Ratio is ranked better than 74.24% of 3071
companies
in the Industrial Products industry
Industry Median: 1.97
vs SHSE:688248: 3.02
China Southern Power Grid Technology Co (SHSE:688248) 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.
China Southern Power Grid Technology Co Current Ratio Related Terms
China Southern Power Grid Technology 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.
China Southern Power Grid Technology Co Current Ratio Chart
China Southern Power Grid Technology Co Annual Data
For the Electrical Equipment & Parts subindustry, China Southern Power Grid Technology 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.
China Southern Power Grid Technology Co Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, China Southern Power Grid Technology Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Southern Power Grid Technology 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.
China Southern Power Grid Technology Co (SHSE:688248) has a Current Ratio of 3.02 as of Mar. 2026. This is near median its historical median of 3.02. Over the past decade, China Southern Power Grid Technology Co's Current Ratio has ranged from 1.19 to 4.82. According to the industry distribution chart, China Southern Power Grid Technology Co ranks #791 out of 3071 companies in the Industrial Products industry, placing it in the top 25.8%.
Is China Southern Power Grid Technology Co's Current Ratio too high?
China Southern Power Grid Technology Co's current Current Ratio of 3.02 is near median its 10-year median of 3.02. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 4.82. The Industrial Products industry median Current Ratio is 1.97. China Southern Power Grid Technology Co's value of 3.02 is 53.3% above this industry median. Based on the distribution chart, China Southern Power Grid Technology Co ranks #791 out of 3071 companies in the Industrial Products industry, which is above the industry midpoint. Overall, China Southern Power Grid Technology Co has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Southern Power Grid Technology Co's Current Ratio compare to VRT and BE?
According to the Industrial Products industry distribution chart, China Southern Power Grid Technology Co ranks #791 out of 3071 companies for Current Ratio. This puts China Southern Power Grid Technology Co in the upper half of its industry. The industry median Current Ratio is 1.97. China Southern Power Grid Technology Co's value of 3.02 is 53.3% above this benchmark. Historically, China Southern Power Grid Technology Co's own Current Ratio has ranged from 1.19 to 4.82 over the past decade. While the company's 10-year median is 3.02 vs. the industry median of 1.97, China Southern Power Grid Technology 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.97, based on 3,071 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. China Southern Power Grid Technology Co's current Current Ratio of 3.02 is 53.3% 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 Industrial Products industry, the median Current Ratio is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Southern Power Grid Technology Co's current Current Ratio is 3.02, which is near median its own 10-year median of 3.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Southern Power Grid Technology Co stock overvalued right now?
Based on GuruFocus' analysis, China Southern Power Grid Technology Co (SHSE:688248) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥46.78, compared to a current price of ¥59.50 — trading 27.2% above its estimated fair value. The current Current Ratio is 3.02, which is near median its 10-year median of 3.02 and 53.3% above the Industrial Products industry median of 1.97. China Southern Power Grid Technology Co's overall GF Score™ is 92/100 with 4 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 China Southern Power Grid Technology Co (SHSE:688248), the current Current Ratio is 3.02 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 China Southern Power Grid Technology Co (SHSE:688248) Overvalued in 2026?
Based on GuruFocus' analysis, China Southern Power Grid Technology Co stock appears to be overvalued.
The current stock price of ¥59.50 is trading 27.2% above its estimated GF Value™ of ¥46.78.
GuruFocus considers China Southern Power Grid Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:688248:
Current Ratio: 3.02 (near median its 10-year median of 3.02)
GF Value™: ¥46.78 vs. price of ¥59.50 (27.2% above fair value)
Industry Position: 53.3% above the Industrial Products median (#791 of 3071)
No single metric tells the full story. See the SHSE:688248 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Southern Power Grid Technology Co Business Description
China Southern Power Grid Technology Co Ltd is engaged in providing a comprehensive solution of technical services and smart equipment to ensure the safe operation and efficiency improvement of the power energy system.
92GF Score
Get the complete analysis for SHSE:688248
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