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Tea Life CoTSE:3172 +0.17%61 Current Ratio is 4.25 as of Jan. 2026, which is 34% above its 10-year median of 3.16. GuruFocus rates TSE:3172 with a GF Score™ of 61/100 and a GF Value™ of 円779.00 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Tea Life Co ranks better than 78.9% 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. Tea Life Co's current ratio for the quarter that ended in Jan. 2026 was 4.25.
Tea Life Co has a current ratio of 4.25. 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 Tea Life Co's Current Ratio or its related term are showing as below:
TSE:3172'
s Current Ratio Range Over the Past 10 Years
Min: 2.57 Med: 3.16 Max: 4.53
Current: 2.85
During the past 13 years, Tea Life Co's highest Current Ratio was 4.53. The lowest was 2.57. And the median was 3.16.
TSE:3172's Current Ratio is ranked better than 78.9% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 1.58
vs TSE:3172: 2.85
Tea Life Co (TSE:3172) 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.
Tea Life Co Current Ratio Related Terms
Tea Life Co Current Ratio Historical Data
* Premium members only.
The historical data trend for Tea Life Co'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.
TSE:3172 vs AMZN, BABA, PDD: Current Ratio Comparison
For the Internet Retail subindustry, Tea Life 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.
Tea Life Co Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Tea Life Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tea Life Co'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.
Tea Life Co (TSE:3172) has a Current Ratio of 4.25 as of Jan. 2026. This is 34% above median its historical median of 3.16. Over the past decade, Tea Life Co's Current Ratio has ranged from 2.57 to 4.53. According to the industry distribution chart, Tea Life Co ranks #238 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 21.1%.
Is Tea Life Co's Current Ratio too high?
Tea Life Co's current Current Ratio of 4.25 is 34% above median its 10-year median of 3.16. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 4.53. The Retail - Cyclical industry median Current Ratio is 1.58. Tea Life Co's value of 4.25 is 169% above this industry median. Based on the distribution chart, Tea Life Co ranks #238 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Tea Life Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tea Life Co's Current Ratio compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Tea Life Co ranks #238 out of 1128 companies for Current Ratio. This places Tea Life Co in the top 21% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.58. Tea Life Co's value of 4.25 is 169% above this benchmark. Historically, Tea Life Co's own Current Ratio has ranged from 2.57 to 4.53 over the past decade. While the company's 10-year median is 3.16 vs. the industry median of 1.58, Tea Life 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 Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.58, based on 1,128 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. Tea Life Co's current Current Ratio of 4.25 is 169% 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 Retail - Cyclical industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tea Life Co's current Current Ratio is 4.25, which is 34% above median its own 10-year median of 3.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tea Life Co stock overvalued right now?
Based on GuruFocus' analysis, Tea Life Co (TSE:3172) is currently considered Significantly Overvalued. The stock's GF Value™ is 円779.00, compared to a current price of 円1,165.00 — trading 49.6% above its estimated fair value. The current Current Ratio is 4.25, which is 34% above median its 10-year median of 3.16 and 169% above the Retail - Cyclical industry median of 1.58. Tea Life Co's overall GF Score™ is 61/100 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 Tea Life Co (TSE:3172), the current Current Ratio is 4.25 as of Jan. 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 Tea Life Co (TSE:3172) Overvalued in 2026?
Based on GuruFocus' analysis, Tea Life Co stock appears to be overvalued.
The current stock price of 円1,165.00 is trading 49.6% above its estimated GF Value™ of 円779.00.
GuruFocus considers Tea Life Co to be Significantly Overvalued.
Key valuation signals for TSE:3172:
Current Ratio: 4.25 (34% above median its 10-year median of 3.16)
GF Value™: 円779.00 vs. price of 円1,165.00 (49.6% above fair value)
Industry Position: 169% above the Retail - Cyclical median (#238 of 1128)
No single metric tells the full story. See the TSE:3172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tea Life Co Ltd is a Japan-based company involved in retail operations, wholesale distribution to mail-order companies and retail stores, as well as real estate leasing. The company operates through three reportable segments: the Wholesale Business, which supplies daily essentials and communication-related products to corporate clients; the Retail Business, which sells health foods, cosmetics, baby goods, and children's furniture directly to consumers through e-commerce channels; and the Property Management Business, which manages the leasing of company-owned properties and handles logistics-related real estate services. It generates the majority of its revenue from the Wholesale segment.
61GF Score
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