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China Modern Dairy HoldingsFRA:07M +1.97%55 Quick Ratio is 0.71 as of Dec. 2025, which is 65% above its 10-year median of 0.43. GuruFocus rates FRA:07M with a GF Score™ of 55/100 and a GF Value™ of €0.10 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,998 Consumer Packaged Goods companies, China Modern Dairy Holdings ranks worse than 68.62% on this metric.
China Modern Dairy Holdings (FRA:07M) 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 Modern Dairy Holdings Quick Ratio Related Terms
China Modern Dairy Holdings 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.
For the Farm Products subindustry, China Modern Dairy Holdings'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 Modern Dairy Holdings Quick Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Modern Dairy Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where China Modern Dairy Holdings's Quick Ratio falls into.
China Modern Dairy Holdings 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 Modern Dairy Holdings (FRA:07M) has a Quick Ratio of 0.71 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Modern Dairy Holdings and its competitors. This is 65% above median its historical median of 0.43. Over the past decade, China Modern Dairy Holdings' Quick Ratio has ranged from 0.25 to 0.71. According to the industry distribution chart, China Modern Dairy Holdings ranks #1371 out of 1998 companies in the Consumer Packaged Goods industry, placing it in the top 68.6%.
Is China Modern Dairy Holdings' Quick Ratio too high?
China Modern Dairy Holdings' current Quick Ratio of 0.71 is 65% above median its 10-year median of 0.43. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 0.71. The Consumer Packaged Goods industry median Quick Ratio is 1.06. China Modern Dairy Holdings' value of 0.71 is 33% below this industry median. Based on the distribution chart, China Modern Dairy Holdings ranks #1371 out of 1998 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, China Modern Dairy Holdings has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Modern Dairy Holdings' Quick Ratio compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, China Modern Dairy Holdings ranks #1371 out of 1998 companies for Quick Ratio. This places China Modern Dairy Holdings in the lower half of its industry. The industry median Quick Ratio is 1.06. China Modern Dairy Holdings' value of 0.71 is 33% below this benchmark. Historically, China Modern Dairy Holdings' own Quick Ratio has ranged from 0.25 to 0.71 over the past decade. While the company's 10-year median is 0.43 vs. the industry median of 1.06, China Modern Dairy Holdings has consistently been below 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 Consumer Packaged Goods company?
The median Quick Ratio among Consumer Packaged Goods companies is 1.06, based on 1,998 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 Modern Dairy Holdings's current Quick Ratio of 0.71 is 33% below 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 Modern Dairy Holdings and its competitors. For the Consumer Packaged Goods industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Modern Dairy Holdings's current Quick Ratio is 0.71, which is 65% above median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Modern Dairy Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Modern Dairy Holdings (FRA:07M) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.10, compared to a current price of €0.16 — trading 55% above its estimated fair value. The current Quick Ratio is 0.71, which is 65% above median its 10-year median of 0.43 and 33% below the Consumer Packaged Goods industry median of 1.06. China Modern Dairy Holdings' overall GF Score™ is 55/100 with 10 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 Modern Dairy Holdings (FRA:07M), the current Quick Ratio is 0.71 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 Modern Dairy Holdings (FRA:07M) Overvalued in 2026?
Based on GuruFocus' analysis, China Modern Dairy Holdings stock appears to be overvalued.
The current stock price of €0.16 is trading 55% above its estimated GF Value™ of €0.10.
GuruFocus considers China Modern Dairy Holdings to be Significantly Overvalued.
Key valuation signals for FRA:07M:
Quick Ratio: 0.71 (65% above median its 10-year median of 0.43)
GF Value™: €0.10 vs. price of €0.16 (55% above fair value)
Industry Position: 33% below the Consumer Packaged Goods median (#1371 of 1998)
No single metric tells the full story. See the FRA:07M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Modern Dairy Holdings Ltd operates in the Chinese food industry. The business of the company includes the production of raw milk, and its revenue mainly depends on the sale of raw milk. The company produces and sells raw milk to customers for processing into dairy products, Liquid Milk, ice cream, formula milk and other dairy products business, which relates to its sale of liquid milk products. It also engaged in new business areas such as feed business, intelligent e-commerce platforms, and forage grass planting. The segments of the company are the Raw milk business and the integrated dairy farming solutions business. The company generates the majority of its revenue from the Raw milk business that engages in raising and breeding dairy cows to produce and sell raw milk.
55GF Score
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