The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Sole Elite Group's current ratio for the quarter that ended in Dec. 2014 was 2.62.
Sole Elite Group has a current ratio of 2.62. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sole Elite Group's Current Ratio or its related term are showing as below:
SOLE's Current Ratio is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 1.79 * Ranked among companies with meaningful Current Ratio only.
Sole Elite Group (NAS:SOLE) 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.
Sole Elite Group Current Ratio Related Terms
Sole Elite Group Current Ratio Historical Data
* Premium members only.
The historical data trend for Sole Elite Group's Current Ratio can be seen below:
* 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.
Sole Elite Group Current Ratio Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
Current Ratio
2.72
3.10
2.62
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
Current Ratio
2.72
3.10
2.62
SOLE vs FORD, JCLY, TLF: Current Ratio Comparison
For the Footwear & Accessories subindustry, Sole Elite Group'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.
Sole Elite Group Current Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sole Elite Group'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.
Sole Elite Group (SOLE) has a Current Ratio of 2.62 as of Dec. 2014.
Is Sole Elite Group's Current Ratio too high?
Sole Elite Group's current Current Ratio is 2.62. The Manufacturing - Apparel & Accessories industry median Current Ratio is 1.79. Sole Elite Group's value of 2.62 is 46.4% above this industry median.
How does Sole Elite Group's Current Ratio compare to FORD and JCLY?
Sole Elite Group's Current Ratio of 2.62 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Current Ratio is 1.79. Sole Elite Group's value of 2.62 is 46.4% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Current Ratio among Manufacturing - Apparel & Accessories companies is 1.79, based on 1,069 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. Sole Elite Group's current Current Ratio of 2.62 is 46.4% 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 Manufacturing - Apparel & Accessories industry, the median Current Ratio is 1.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current Current Ratio is 2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Current Ratio of 2.62. The current Current Ratio is 2.62 and 46.4% above the Manufacturing - Apparel & Accessories industry median of 1.79. 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 Sole Elite Group (SOLE), the current Current Ratio is 2.62 as of Dec. 2014. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SOLE has been successfully added to your