China Automotive SystemsFRA:2IW -0.53%76 Quick Ratio is 1.13 as of Dec. 2025, which is 3% below its 10-year median of 1.16. GuruFocus rates FRA:2IW with a GF Score™ of 76/100 and a GF Value™ of €4.38 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,337 Vehicles & Parts companies, China Automotive Systems ranks better than 54.9% on this metric.
China Automotive Systems has a quick ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for China Automotive Systems's Quick Ratio or its related term are showing as below:
FRA:2IW'
s Quick Ratio Range Over the Past 10 Years
Min: 1.07 Med: 1.16 Max: 1.26
Current: 1.13
During the past 13 years, China Automotive Systems's highest Quick Ratio was 1.26. The lowest was 1.07. And the median was 1.16.
FRA:2IW's Quick Ratio is ranked better than 54.9% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs FRA:2IW: 1.13
China Automotive Systems (FRA:2IW) 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 Automotive Systems Quick Ratio Related Terms
China Automotive Systems 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.
FRA:2IW vs INVZ, CVGI, SRI: Quick Ratio Comparison
For the Auto Parts subindustry, China Automotive Systems'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 Automotive Systems Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Quick Ratio falls into.
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.
China Automotive Systems's Quick Ratio for the fiscal year that ended in Dec. 2025 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 Automotive Systems (FRA:2IW) has a Quick Ratio of 1.13 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Automotive Systems and its competitors. This is near median its historical median of 1.16. Over the past decade, China Automotive Systems' Quick Ratio has ranged from 1.07 to 1.26. According to the industry distribution chart, China Automotive Systems ranks #603 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 45.1%.
Is China Automotive Systems' Quick Ratio too high?
China Automotive Systems' current Quick Ratio of 1.13 is near median its 10-year median of 1.16. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 1.26. The Vehicles & Parts industry median Quick Ratio is 1.05. China Automotive Systems' value of 1.13 is 7.6% above this industry median. Based on the distribution chart, China Automotive Systems ranks #603 out of 1337 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, China Automotive Systems has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Quick Ratio compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #603 out of 1337 companies for Quick Ratio. This puts China Automotive Systems in the upper half of its industry. The industry median Quick Ratio is 1.05. China Automotive Systems' value of 1.13 is 7.6% above this benchmark. Historically, China Automotive Systems' own Quick Ratio has ranged from 1.07 to 1.26 over the past decade. While the company's 10-year median is 1.16 vs. the industry median of 1.05, China Automotive Systems 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 Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.05, based on 1,337 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 Automotive Systems's current Quick Ratio of 1.13 is 7.6% 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 Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Quick Ratio is 1.13, which is near median its own 10-year median of 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
Based on GuruFocus' analysis, China Automotive Systems (FRA:2IW) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.38, compared to a current price of €3.78 — trading 13.7% below its estimated fair value. The current Quick Ratio is 1.13, which is near median its 10-year median of 1.16 and 7.6% above the Vehicles & Parts industry median of 1.05. China Automotive Systems' overall GF Score™ is 76/100 with 3 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 Automotive Systems (FRA:2IW), the current Quick Ratio is 1.13 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 Automotive Systems (FRA:2IW) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of €3.78 is trading 13.7% below its estimated GF Value™ of €4.38.
GuruFocus considers China Automotive Systems to be Modestly Undervalued.
Key valuation signals for FRA:2IW:
Quick Ratio: 1.13 (near median its 10-year median of 1.16)
GF Value™: €4.38 vs. price of €3.78 (13.7% below fair value)
Industry Position: 7.6% above the Vehicles & Parts median (#603 of 1337)
No single metric tells the full story. See the FRA:2IW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
76GF Score
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