Southchip Semiconductor Technology (Shanghai) Co has a current ratio of 5.23. 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:688484's Current Ratio is ranked better than 80.82% of 1027
companies
in the Semiconductors industry
Industry Median: 2.49
vs SHSE:688484: 5.23
Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) 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.
Southchip Semiconductor Technology (Shanghai) Co Current Ratio Related Terms
Southchip Semiconductor Technology (Shanghai) 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.
Southchip Semiconductor Technology (Shanghai) Co Current Ratio Chart
Southchip Semiconductor Technology (Shanghai) Co Annual Data
* 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.
Southchip Semiconductor Technology (Shanghai) 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.
Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) has a Current Ratio of 5.23 as of Mar. 2026. This is near median its historical median of 5.51. Over the past decade, Southchip Semiconductor Technology (Shanghai) Co's Current Ratio has ranged from 1.81 to 9.00. According to the industry distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 1027 companies in the Semiconductors industry, placing it in the top 19.2%.
Is Southchip Semiconductor Technology (Shanghai) Co's Current Ratio too high?
Southchip Semiconductor Technology (Shanghai) Co's current Current Ratio of 5.23 is near median its 10-year median of 5.51. Over the past 10 years, this metric has ranged from a low of 1.81 to a high of 9.00. The Semiconductors industry median Current Ratio is 2.49. Southchip Semiconductor Technology (Shanghai) Co's value of 5.23 is 110% above this industry median. Based on the distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 1027 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Southchip Semiconductor Technology (Shanghai) Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Southchip Semiconductor Technology (Shanghai) Co's Current Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 1027 companies for Current Ratio. This places Southchip Semiconductor Technology (Shanghai) Co in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.49. Southchip Semiconductor Technology (Shanghai) Co's value of 5.23 is 110% above this benchmark. Historically, Southchip Semiconductor Technology (Shanghai) Co's own Current Ratio has ranged from 1.81 to 9.00 over the past decade. While the company's 10-year median is 5.51 vs. the industry median of 2.49, Southchip Semiconductor Technology (Shanghai) 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. Southchip Semiconductor Technology (Shanghai) Co's current Current Ratio of 5.23 is 110% 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. Southchip Semiconductor Technology (Shanghai) Co's current Current Ratio is 5.23, which is near median its own 10-year median of 5.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southchip Semiconductor Technology (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) is currently considered Possible Value Trap. The stock's GF Value™ is ¥66.02, compared to a current price of ¥42.80 — trading 35.2% below its estimated fair value. The current Current Ratio is 5.23, which is near median its 10-year median of 5.51 and 110% above the Semiconductors industry median of 2.49. Southchip Semiconductor Technology (Shanghai) Co's overall GF Score™ is 60/100 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 Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484), the current Current Ratio is 5.23 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 Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) Overvalued in 2026?
Based on GuruFocus' analysis, Southchip Semiconductor Technology (Shanghai) Co stock appears to be undervalued.
The current stock price of ¥42.80 is trading 35.2% below its estimated GF Value™ of ¥66.02.
GuruFocus considers Southchip Semiconductor Technology (Shanghai) Co to be Possible Value Trap.
Key valuation signals for SHSE:688484:
Current Ratio: 5.23 (near median its 10-year median of 5.51)
GF Value™: ¥66.02 vs. price of ¥42.80 (35.2% below fair value)
Industry Position: 110% above the Semiconductors median (#197 of 1027)
No single metric tells the full story. See the SHSE:688484 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southchip Semiconductor Technology (Shanghai) Co Business Description
Southchip Semiconductor Technology (Shanghai) Co Ltd is engaged in the R&D, design and sales of analog and embedded chips, power and battery management. The company's products include Automotive Products, DC-DC Converters, AC-DC Converters, USB Type-C & Power Delivery, PMIC, Charging Management, and Battery Management Solution. It provides solutions to automotive industry, industrial control and consumer electronics.
60GF Score
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