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. China Evergrande Group's current ratio for the quarter that ended in Jun. 2023 was 0.69.
China Evergrande Group has a current ratio of 0.69. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If China Evergrande Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for China Evergrande Group's Current Ratio or its related term are showing as below:
EGRNQ'
s Current Ratio Range Over the Past 10 Years
Min: 0.69 Med: 1.37 Max: 1.54
Current: 0.69
During the past 13 years, China Evergrande Group's highest Current Ratio was 1.54. The lowest was 0.69. And the median was 1.37.
EGRNQ's Current Ratio is ranked worse than 85.52% of 1830
companies
in the Real Estate industry
Industry Median: 1.62
vs EGRNQ: 0.69
China Evergrande Group Current Ratio Historical Data
The historical data trend for China Evergrande Group'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.
Competitive Comparison of China Evergrande Group's Current Ratio
For the Real Estate - Development subindustry, China Evergrande Group'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.
China Evergrande Group's Current Ratio Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where China Evergrande Group's Current Ratio falls into.
China Evergrande Group Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
China Evergrande Group's Current Ratio for the fiscal year that ended in Dec. 2022 is calculated as
* 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.
China Evergrande Group (OTCPK:EGRNQ) 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.
China Evergrande Group Current Ratio Related Terms
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China Evergrande Group (China Evergrande Group) Business Description
China Evergrande Group is a large real estate developer. In 2019, it was ranked in third place by sales value among developers in China. It has projects in more than 200 cities across China and property development accounts for 90% of earnings. The firm also has interests in banking, insurance, tourism, and healthcare. Evergrande was listed in Hong Kong in late 2009. The company is in the process of spinning off its real estate business into a Shenzhen-listed entity. Free float is 25%, with the company's founder Hui Ka Yan holding the remaining share.
China Evergrande Group (China Evergrande Group) Headlines
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