Daiwa Cycle CoTSE:5888 -2.20%18 Current Ratio is 2.07 as of Jan. 2026, which is 2% above its 10-year median of 2.03. GuruFocus rates TSE:5888 with a GF Score™ of 18/100. Among 1,335 Vehicles & Parts companies, Daiwa Cycle Co ranks better than 65.54% 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. Daiwa Cycle Co's current ratio for the quarter that ended in Jan. 2026 was 2.07.
Daiwa Cycle Co has a current ratio of 2.07. It generally indicates good short-term financial strength.
The historical rank and industry rank for Daiwa Cycle Co's Current Ratio or its related term are showing as below:
TSE:5888'
s Current Ratio Range Over the Past 10 Years
Min: 1.63 Med: 2.03 Max: 2.07
Current: 1.97
During the past 5 years, Daiwa Cycle Co's highest Current Ratio was 2.07. The lowest was 1.63. And the median was 2.03.
TSE:5888's Current Ratio is ranked better than 65.54% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs TSE:5888: 1.97
Daiwa Cycle Co (TSE:5888) 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.
Daiwa Cycle Co Current Ratio Related Terms
Daiwa Cycle Co Current Ratio Historical Data
* Premium members only.
The historical data trend for Daiwa Cycle 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:5888 vs BC, PII, THO: Current Ratio Comparison
For the Recreational Vehicles subindustry, Daiwa Cycle 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.
Daiwa Cycle Co Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daiwa Cycle Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Daiwa Cycle 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.
Daiwa Cycle Co (TSE:5888) has a Current Ratio of 2.07 as of Jan. 2026. This is near median its historical median of 2.03. Over the past decade, Daiwa Cycle Co's Current Ratio has ranged from 1.63 to 2.07. According to the industry distribution chart, Daiwa Cycle Co ranks #460 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 34.5%.
Is Daiwa Cycle Co's Current Ratio too high?
Daiwa Cycle Co's current Current Ratio of 2.07 is near median its 10-year median of 2.03. Over the past 10 years, this metric has ranged from a low of 1.63 to a high of 2.07. The Vehicles & Parts industry median Current Ratio is 1.53. Daiwa Cycle Co's value of 2.07 is 35.3% above this industry median. Based on the distribution chart, Daiwa Cycle Co ranks #460 out of 1335 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Daiwa Cycle Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Cycle Co's Current Ratio compare to BC and PII?
According to the Vehicles & Parts industry distribution chart, Daiwa Cycle Co ranks #460 out of 1335 companies for Current Ratio. This puts Daiwa Cycle Co in the upper half of its industry. The industry median Current Ratio is 1.53. Daiwa Cycle Co's value of 2.07 is 35.3% above this benchmark. Historically, Daiwa Cycle Co's own Current Ratio has ranged from 1.63 to 2.07 over the past decade. While the company's 10-year median is 2.03 vs. the industry median of 1.53, Daiwa Cycle 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,335 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. Daiwa Cycle Co's current Current Ratio of 2.07 is 35.3% 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 Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Cycle Co's current Current Ratio is 2.07, which is near median its own 10-year median of 2.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Cycle Co stock overvalued right now?
Daiwa Cycle Co (TSE:5888) has a current Current Ratio of 2.07. The current Current Ratio is 2.07, which is near median its 10-year median of 2.03 and 35.3% above the Vehicles & Parts industry median of 1.53. Daiwa Cycle Co's overall GF Score™ is 18/100. 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 Daiwa Cycle Co (TSE:5888), the current Current Ratio is 2.07 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.
Daiwa Cycle Co Ltd is a specialty retail company that operates a chain of bicycle stores. The Company is engaged in the Sales of bicycles, bicycle parts and accessories as well as the provision of bicycle maintenance and repair. The company distributes its products and services directly to consumers through its directly managed physical locations, franchise partnerships, and e-commerce platforms.
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