Guizhou Zhenhua Fengguang Semiconductor Co has a current ratio of 12.90. 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:688439's Current Ratio is ranked better than 95.42% of 1027
companies
in the Semiconductors industry
Industry Median: 2.49
vs SHSE:688439: 12.90
Guizhou Zhenhua Fengguang Semiconductor Co (SHSE:688439) 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.
Guizhou Zhenhua Fengguang Semiconductor Co Current Ratio Related Terms
Guizhou Zhenhua Fengguang Semiconductor 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.
Guizhou Zhenhua Fengguang Semiconductor Co Current Ratio Chart
Guizhou Zhenhua Fengguang Semiconductor Co Annual Data
SHSE:688439 vs NVDA, AVGO, MU: Current Ratio Comparison
For the Semiconductors subindustry, Guizhou Zhenhua Fengguang Semiconductor 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.
Guizhou Zhenhua Fengguang Semiconductor Co Current Ratio vs Semiconductors 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.
Guizhou Zhenhua Fengguang Semiconductor Co (SHSE:688439) has a Current Ratio of 12.90 as of Mar. 2026. This is 38% above median its historical median of 9.36. Over the past decade, Guizhou Zhenhua Fengguang Semiconductor Co's Current Ratio has ranged from 1.61 to 13.61. According to the industry distribution chart, Guizhou Zhenhua Fengguang Semiconductor Co ranks #47 out of 1027 companies in the Semiconductors industry, placing it in the top 4.6%.
Is Guizhou Zhenhua Fengguang Semiconductor Co's Current Ratio too high?
Guizhou Zhenhua Fengguang Semiconductor Co's current Current Ratio of 12.90 is 38% above median its 10-year median of 9.36. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 13.61. The Semiconductors industry median Current Ratio is 2.49. Guizhou Zhenhua Fengguang Semiconductor Co's value of 12.90 is 418.1% above this industry median. Based on the distribution chart, Guizhou Zhenhua Fengguang Semiconductor Co ranks #47 out of 1027 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Guizhou Zhenhua Fengguang Semiconductor Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Guizhou Zhenhua Fengguang Semiconductor Co's Current Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Guizhou Zhenhua Fengguang Semiconductor Co ranks #47 out of 1027 companies for Current Ratio. This places Guizhou Zhenhua Fengguang Semiconductor Co in the top 5% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.49. Guizhou Zhenhua Fengguang Semiconductor Co's value of 12.90 is 418.1% above this benchmark. Historically, Guizhou Zhenhua Fengguang Semiconductor Co's own Current Ratio has ranged from 1.61 to 13.61 over the past decade. While the company's 10-year median is 9.36 vs. the industry median of 2.49, Guizhou Zhenhua Fengguang Semiconductor 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 Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.49, based on 1,027 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. Guizhou Zhenhua Fengguang Semiconductor Co's current Current Ratio of 12.90 is 418.1% 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 Semiconductors industry, the median Current Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guizhou Zhenhua Fengguang Semiconductor Co's current Current Ratio is 12.90, which is 38% above median its own 10-year median of 9.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guizhou Zhenhua Fengguang Semiconductor Co stock overvalued right now?
Based on GuruFocus' analysis, Guizhou Zhenhua Fengguang Semiconductor Co (SHSE:688439) is currently considered Fairly Valued. The stock's GF Value™ is ¥46.11, compared to a current price of ¥43.41 — trading 5.9% below its estimated fair value. The current Current Ratio is 12.90, which is 38% above median its 10-year median of 9.36 and 418.1% above the Semiconductors industry median of 2.49. Guizhou Zhenhua Fengguang Semiconductor Co's overall GF Score™ is 61/100 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 Guizhou Zhenhua Fengguang Semiconductor Co (SHSE:688439), the current Current Ratio is 12.90 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 Guizhou Zhenhua Fengguang Semiconductor Co (SHSE:688439) Overvalued in 2026?
Based on GuruFocus' analysis, Guizhou Zhenhua Fengguang Semiconductor Co stock appears to be undervalued.
The current stock price of ¥43.41 is trading 5.9% below its estimated GF Value™ of ¥46.11.
GuruFocus considers Guizhou Zhenhua Fengguang Semiconductor Co to be Fairly Valued.
Key valuation signals for SHSE:688439:
Current Ratio: 12.90 (38% above median its 10-year median of 9.36)
GF Value™: ¥46.11 vs. price of ¥43.41 (5.9% below fair value)
Industry Position: 418.1% above the Semiconductors median (#47 of 1027)
No single metric tells the full story. See the SHSE:688439 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guizhou Zhenhua Fengguang Semiconductor Co Business Description
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