Formosa PetrochemicalTPE:6505 -0.36%89 Current Ratio is 6.54 as of Dec. 2025, which is 36% above its 10-year median of 4.80. GuruFocus rates TPE:6505 with a GF Score™ of 89/100 and a GF Value™ of NT$57.62 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,014 Oil & Gas companies, Formosa Petrochemical ranks better than 91.03% 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. Formosa Petrochemical's current ratio for the quarter that ended in Dec. 2025 was 6.54.
Formosa Petrochemical has a current ratio of 6.54. 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 Formosa Petrochemical's Current Ratio or its related term are showing as below:
TPE:6505'
s Current Ratio Range Over the Past 10 Years
Min: 3.83 Med: 4.8 Max: 7.45
Current: 6.54
During the past 13 years, Formosa Petrochemical's highest Current Ratio was 7.45. The lowest was 3.83. And the median was 4.80.
TPE:6505's Current Ratio is ranked better than 91.03% of 1014
companies
in the Oil & Gas industry
Industry Median: 1.345
vs TPE:6505: 6.54
Formosa Petrochemical (TPE:6505) 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.
Formosa Petrochemical Current Ratio Related Terms
Formosa Petrochemical Current Ratio Historical Data
* Premium members only.
The historical data trend for Formosa Petrochemical'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:6505 vs VLO, MPC, PSX: Current Ratio Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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.
Formosa Petrochemical Current Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Current Ratio distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical'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.
Formosa Petrochemical (TPE:6505) has a Current Ratio of 6.54 as of Dec. 2025. This is 36% above median its historical median of 4.80. Over the past decade, Formosa Petrochemical's Current Ratio has ranged from 3.83 to 7.45. According to the industry distribution chart, Formosa Petrochemical ranks #91 out of 1014 companies in the Oil & Gas industry, placing it in the top 9%.
Is Formosa Petrochemical's Current Ratio too high?
Formosa Petrochemical's current Current Ratio of 6.54 is 36% above median its 10-year median of 4.80. Over the past 10 years, this metric has ranged from a low of 3.83 to a high of 7.45. The Oil & Gas industry median Current Ratio is 1.35. Formosa Petrochemical's value of 6.54 is 386.2% above this industry median. Based on the distribution chart, Formosa Petrochemical ranks #91 out of 1014 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Petrochemical has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Current Ratio compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #91 out of 1014 companies for Current Ratio. This places Formosa Petrochemical in the top 9% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.35. Formosa Petrochemical's value of 6.54 is 386.2% above this benchmark. Historically, Formosa Petrochemical's own Current Ratio has ranged from 3.83 to 7.45 over the past decade. While the company's 10-year median is 4.80 vs. the industry median of 1.35, Formosa Petrochemical 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 an Oil & Gas company?
The median Current Ratio among Oil & Gas companies is 1.35, based on 1,014 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. Formosa Petrochemical's current Current Ratio of 6.54 is 386.2% 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 Oil & Gas industry, the median Current Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Current Ratio is 6.54, which is 36% above median its own 10-year median of 4.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Fairly Valued. The stock's GF Value™ is NT$57.62, compared to a current price of NT$55.10 — trading 4.4% below its estimated fair value. The current Current Ratio is 6.54, which is 36% above median its 10-year median of 4.80 and 386.2% above the Oil & Gas industry median of 1.35. Formosa Petrochemical's overall GF Score™ is 89/100 with 3 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 Formosa Petrochemical (TPE:6505), the current Current Ratio is 6.54 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 Formosa Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be undervalued.
The current stock price of NT$55.10 is trading 4.4% below its estimated GF Value™ of NT$57.62.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
Current Ratio: 6.54 (36% above median its 10-year median of 4.80)
GF Value™: NT$57.62 vs. price of NT$55.10 (4.4% below fair value)
Industry Position: 386.2% above the Oil & Gas median (#91 of 1014)
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
89GF Score
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