SHSE:688727's Current Ratio is ranked better than 54.72% of 1027
companies
in the Semiconductors industry
Industry Median: 2.49
vs SHSE:688727: 2.74
Xiamen Hengkun New Material Technology Co (SHSE:688727) 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.
Xiamen Hengkun New Material Technology Co Current Ratio Related Terms
Xiamen Hengkun New Material 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.
Xiamen Hengkun New Material Technology Co Current Ratio Chart
Xiamen Hengkun New Material Technology Co Annual Data
SHSE:688727 vs AMAT, LRCX, KLAC: Current Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, Xiamen Hengkun New Material 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.
Xiamen Hengkun New Material Technology 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.
Xiamen Hengkun New Material Technology Co (SHSE:688727) has a Current Ratio of 2.74 as of Mar. 2026. This is 104% above median its historical median of 1.34. Over the past decade, Xiamen Hengkun New Material Technology Co's Current Ratio has ranged from 0.91 to 3.07. According to the industry distribution chart, Xiamen Hengkun New Material Technology Co ranks #465 out of 1027 companies in the Semiconductors industry, placing it in the top 45.3%.
Is Xiamen Hengkun New Material Technology Co's Current Ratio too high?
Xiamen Hengkun New Material Technology Co's current Current Ratio of 2.74 is 104% above median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 3.07. The Semiconductors industry median Current Ratio is 2.49. Xiamen Hengkun New Material Technology Co's value of 2.74 is 10% above this industry median. Based on the distribution chart, Xiamen Hengkun New Material Technology Co ranks #465 out of 1027 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Xiamen Hengkun New Material Technology Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Xiamen Hengkun New Material Technology Co's Current Ratio compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Xiamen Hengkun New Material Technology Co ranks #465 out of 1027 companies for Current Ratio. This puts Xiamen Hengkun New Material Technology Co in the upper half of its industry. The industry median Current Ratio is 2.49. Xiamen Hengkun New Material Technology Co's value of 2.74 is 10% above this benchmark. Historically, Xiamen Hengkun New Material Technology Co's own Current Ratio has ranged from 0.91 to 3.07 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 2.49, Xiamen Hengkun New Material 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 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. Xiamen Hengkun New Material Technology Co's current Current Ratio of 2.74 is 10% 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. Xiamen Hengkun New Material Technology Co's current Current Ratio is 2.74, which is 104% above median its own 10-year median of 1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Hengkun New Material Technology Co stock overvalued right now?
Xiamen Hengkun New Material Technology Co (SHSE:688727) has a current Current Ratio of 2.74. The current Current Ratio is 2.74, which is 104% above median its 10-year median of 1.34 and 10% above the Semiconductors industry median of 2.49. Xiamen Hengkun New Material Technology Co's overall GF Score™ is 34/100 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 Xiamen Hengkun New Material Technology Co (SHSE:688727), the current Current Ratio is 2.74 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.
Xiamen Hengkun New Material Technology Co Business Description
Xiamen Hengkun New Material Technology Co Ltd is principally engaged in the research and development, production and sales of semiconductor materials, and its products are mainly used in the process of integrated circuit chip manufacturing. Additionally the company is into new material technology promotion services, integrated circuit manufacturing, engineering and technology research and experimental development, manufacturing of special materials for electronics and sales of chemical products, electronic special materials, machinery and equipment, and electronic products. Also, the company is into non-residential real estate leasing.
34GF Score
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