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China Traditional Chinese Medicine Holdings Co (OTCPK:CHIZF) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
China Traditional Chinese Medicine Holdings Co Quick Ratio Related Terms
China Traditional Chinese Medicine Holdings Co Quick Ratio Historical Data
* 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 Traditional Chinese Medicine Holdings Co Quick Ratio Chart
China Traditional Chinese Medicine Holdings Co Annual Data
For the Drug Manufacturers - Specialty & Generic subindustry, China Traditional Chinese Medicine Holdings Co's Quick Ratio, along with its competitors' market caps and Quick 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 Traditional Chinese Medicine Holdings Co Quick Ratio vs Drug Manufacturers Industry
China Traditional Chinese Medicine Holdings Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* 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 Traditional Chinese Medicine Holdings Co (CHIZF) has a Quick Ratio of 1.81 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Traditional Chinese Medicine Holdings Co and its competitors. This is 21% above median its historical median of 1.49. Over the past decade, China Traditional Chinese Medicine Holdings Co's Quick Ratio has ranged from 0.95 to 1.81. According to the industry distribution chart, China Traditional Chinese Medicine Holdings Co ranks #392 out of 999 companies in the Drug Manufacturers industry, placing it in the top 39.2%.
Is China Traditional Chinese Medicine Holdings Co's Quick Ratio too high?
China Traditional Chinese Medicine Holdings Co's current Quick Ratio of 1.81 is 21% above median its 10-year median of 1.49. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 1.81. The Drug Manufacturers industry median Quick Ratio is 1.44. China Traditional Chinese Medicine Holdings Co's value of 1.81 is 25.7% above this industry median. Based on the distribution chart, China Traditional Chinese Medicine Holdings Co ranks #392 out of 999 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, China Traditional Chinese Medicine Holdings Co has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Traditional Chinese Medicine Holdings Co's Quick Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, China Traditional Chinese Medicine Holdings Co ranks #392 out of 999 companies for Quick Ratio. This puts China Traditional Chinese Medicine Holdings Co in the upper half of its industry. The industry median Quick Ratio is 1.44. China Traditional Chinese Medicine Holdings Co's value of 1.81 is 25.7% above this benchmark. Historically, China Traditional Chinese Medicine Holdings Co's own Quick Ratio has ranged from 0.95 to 1.81 over the past decade. While the company's 10-year median is 1.49 vs. the industry median of 1.44, China Traditional Chinese Medicine Holdings 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 Quick Ratio for a Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.44, based on 999 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Traditional Chinese Medicine Holdings Co's current Quick Ratio of 1.81 is 25.7% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Traditional Chinese Medicine Holdings Co and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Traditional Chinese Medicine Holdings Co's current Quick Ratio is 1.81, which is 21% above median its own 10-year median of 1.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Traditional Chinese Medicine Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, China Traditional Chinese Medicine Holdings Co (CHIZF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.36, compared to a current price of $0.16 — trading 54.7% below its estimated fair value. The current Quick Ratio is 1.81, which is 21% above median its 10-year median of 1.49 and 25.7% above the Drug Manufacturers industry median of 1.44. China Traditional Chinese Medicine Holdings Co's overall GF Score™ is 42/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For China Traditional Chinese Medicine Holdings Co (CHIZF), the current Quick Ratio is 1.81 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 China Traditional Chinese Medicine Holdings Co (CHIZF) Overvalued in 2026?
Based on GuruFocus' analysis, China Traditional Chinese Medicine Holdings Co stock appears to be undervalued.
The current stock price of $0.16 is trading 54.7% below its estimated GF Value™ of $0.36.
GuruFocus considers China Traditional Chinese Medicine Holdings Co to be Possible Value Trap.
Key valuation signals for CHIZF:
Quick Ratio: 1.81 (21% above median its 10-year median of 1.49)
GF Value™: $0.36 vs. price of $0.16 (54.7% below fair value)
Industry Position: 25.7% above the Drug Manufacturers median (#392 of 999)
No single metric tells the full story. See the CHIZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Traditional Chinese Medicine Holdings Co Ltd is engaged in the Chinese healthcare sector. The company functions through four segments: Yi Fang, Tian Jiang, Tong Ji Tang, and Medi-World. It generates maximum revenue from the Yifang segment which mainly engages in the manufacture and sales of concentrated TCM granules (CTCMG), TCM healthcare products, and TCM decoction pieces under the Yi Fang brand. The majority of the revenue of the Yi Fang segment is derived from the sales of CTCMG. Geographically, it derives a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.
42GF Score
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