Cathay Chemical WorksTPE:1713 +0.71%75 Current Ratio is 7.87 as of Dec. 2025, which is 58% below its 10-year median of 18.61. GuruFocus rates TPE:1713 with a GF Score™ of 75/100 and a GF Value™ of NT$42.86 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,609 Chemicals companies, Cathay Chemical Works ranks better than 93.54% on this metric.
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. Cathay Chemical Works's current ratio for the quarter that ended in Dec. 2025 was 7.87.
Cathay Chemical Works has a current ratio of 7.87. 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.
The historical rank and industry rank for Cathay Chemical Works's Current Ratio or its related term are showing as below:
TPE:1713'
s Current Ratio Range Over the Past 10 Years
Min: 7.87 Med: 18.61 Max: 28.06
Current: 7.87
During the past 13 years, Cathay Chemical Works's highest Current Ratio was 28.06. The lowest was 7.87. And the median was 18.61.
TPE:1713's Current Ratio is ranked better than 93.54% of 1609
companies
in the Chemicals industry
Industry Median: 1.89
vs TPE:1713: 7.87
Cathay Chemical Works (TPE:1713) 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.
Cathay Chemical Works Current Ratio Related Terms
Cathay Chemical Works Current Ratio Historical Data
* Premium members only.
The historical data trend for Cathay Chemical Works'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.
TPE:1713 vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Cathay Chemical Works'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.
Cathay Chemical Works Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Chemical Works's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cathay Chemical Works'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.
Cathay Chemical Works (TPE:1713) has a Current Ratio of 7.87 as of Dec. 2025. This is 58% below median its historical median of 18.61. Over the past decade, Cathay Chemical Works' Current Ratio has ranged from 7.87 to 28.06. According to the industry distribution chart, Cathay Chemical Works ranks #104 out of 1609 companies in the Chemicals industry, placing it in the top 6.5%.
Is Cathay Chemical Works' Current Ratio too high?
Cathay Chemical Works' current Current Ratio of 7.87 is 58% below median its 10-year median of 18.61. Over the past 10 years, this metric has ranged from a low of 7.87 to a high of 28.06. The Chemicals industry median Current Ratio is 1.89. Cathay Chemical Works' value of 7.87 is 316.4% above this industry median. Based on the distribution chart, Cathay Chemical Works ranks #104 out of 1609 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Chemical Works has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cathay Chemical Works ranks #104 out of 1609 companies for Current Ratio. This places Cathay Chemical Works in the top 7% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.89. Cathay Chemical Works' value of 7.87 is 316.4% above this benchmark. Historically, Cathay Chemical Works' own Current Ratio has ranged from 7.87 to 28.06 over the past decade. While the company's 10-year median is 18.61 vs. the industry median of 1.89, Cathay Chemical Works 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,609 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. Cathay Chemical Works's current Current Ratio of 7.87 is 316.4% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Chemical Works's current Current Ratio is 7.87, which is 58% below median its own 10-year median of 18.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$42.86, compared to a current price of NT$49.65 — trading 15.8% above its estimated fair value. The current Current Ratio is 7.87, which is 58% below median its 10-year median of 18.61 and 316.4% above the Chemicals industry median of 1.89. Cathay Chemical Works' overall GF Score™ is 75/100 with 6 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 Cathay Chemical Works (TPE:1713), the current Current Ratio is 7.87 as of Dec. 2025. 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 Cathay Chemical Works (TPE:1713) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be overvalued.
The current stock price of NT$49.65 is trading 15.8% above its estimated GF Value™ of NT$42.86.
GuruFocus considers Cathay Chemical Works to be Modestly Overvalued.
Key valuation signals for TPE:1713:
Current Ratio: 7.87 (58% below median its 10-year median of 18.61)
GF Value™: NT$42.86 vs. price of NT$49.65 (15.8% above fair value)
Industry Position: 316.4% above the Chemicals median (#104 of 1609)
No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
75GF Score
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