Muromachi ChemicalsTSE:4885 +0.86%76 Current Ratio is 2.47 as of Nov. 2025, which is 41% above its 10-year median of 1.75. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円931.86 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,604 Chemicals companies, Muromachi Chemicals ranks better than 66.58% 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. Muromachi Chemicals's current ratio for the quarter that ended in Nov. 2025 was 2.47.
Muromachi Chemicals has a current ratio of 2.47. It generally indicates good short-term financial strength.
The historical rank and industry rank for Muromachi Chemicals's Current Ratio or its related term are showing as below:
TSE:4885'
s Current Ratio Range Over the Past 10 Years
Min: 1.09 Med: 1.75 Max: 3.18
Current: 2.55
During the past 7 years, Muromachi Chemicals's highest Current Ratio was 3.18. The lowest was 1.09. And the median was 1.75.
TSE:4885's Current Ratio is ranked better than 66.58% of 1604
companies
in the Chemicals industry
Industry Median: 1.89
vs TSE:4885: 2.55
Muromachi Chemicals (TSE:4885) 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.
Muromachi Chemicals Current Ratio Related Terms
Muromachi Chemicals Current Ratio Historical Data
* Premium members only.
The historical data trend for Muromachi Chemicals'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.
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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.
Muromachi Chemicals (TSE:4885) has a Current Ratio of 2.47 as of Nov. 2025. This is 41% above median its historical median of 1.75. Over the past decade, Muromachi Chemicals' Current Ratio has ranged from 1.09 to 3.18. According to the industry distribution chart, Muromachi Chemicals ranks #536 out of 1604 companies in the Chemicals industry, placing it in the top 33.4%.
Is Muromachi Chemicals' Current Ratio too high?
Muromachi Chemicals' current Current Ratio of 2.47 is 41% above median its 10-year median of 1.75. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 3.18. The Chemicals industry median Current Ratio is 1.89. Muromachi Chemicals' value of 2.47 is 30.7% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #536 out of 1604 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #536 out of 1604 companies for Current Ratio. This puts Muromachi Chemicals in the upper half of its industry. The industry median Current Ratio is 1.89. Muromachi Chemicals' value of 2.47 is 30.7% above this benchmark. Historically, Muromachi Chemicals' own Current Ratio has ranged from 1.09 to 3.18 over the past decade. While the company's 10-year median is 1.75 vs. the industry median of 1.89, Muromachi Chemicals 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 1,604 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. Muromachi Chemicals's current Current Ratio of 2.47 is 30.7% 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. Muromachi Chemicals's current Current Ratio is 2.47, which is 41% above median its own 10-year median of 1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円931.86, compared to a current price of 円934.00 — trading 0.2% above its estimated fair value. The current Current Ratio is 2.47, which is 41% above median its 10-year median of 1.75 and 30.7% above the Chemicals industry median of 1.89. Muromachi Chemicals' overall GF Score™ is 76/100 with 4 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 Muromachi Chemicals (TSE:4885), the current Current Ratio is 2.47 as of Nov. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be overvalued.
The current stock price of 円934.00 is trading 0.2% above its estimated GF Value™ of 円931.86.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Current Ratio: 2.47 (41% above median its 10-year median of 1.75)
GF Value™: 円931.86 vs. price of 円934.00 (0.2% above fair value)
Industry Position: 30.7% above the Chemicals median (#536 of 1604)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score
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