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China Energy Development Holdings (HKSE:00228) 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 Energy Development Holdings Quick Ratio Related Terms
China Energy Development 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.
China Energy Development Holdings Quick Ratio Chart
For the Oil & Gas Integrated subindustry, China Energy Development 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 Energy Development Holdings Quick Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Energy Development Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where China Energy Development Holdings's Quick Ratio falls into.
China Energy Development 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 Energy Development Holdings (HKSE:00228) has a Quick Ratio of 1.27 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Energy Development Holdings and its competitors. This is 140% above median its historical median of 0.53. Over the past decade, China Energy Development Holdings' Quick Ratio has ranged from 0.35 to 1.42. According to the industry distribution chart, China Energy Development Holdings ranks #415 out of 1023 companies in the Oil & Gas industry, placing it in the top 40.6%.
Is China Energy Development Holdings' Quick Ratio too high?
China Energy Development Holdings' current Quick Ratio of 1.27 is 140% above median its 10-year median of 0.53. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 1.42. The Oil & Gas industry median Quick Ratio is 1.14. China Energy Development Holdings' value of 1.27 is 11.4% above this industry median. Based on the distribution chart, China Energy Development Holdings ranks #415 out of 1023 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, China Energy Development Holdings has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Energy Development Holdings' Quick Ratio compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, China Energy Development Holdings ranks #415 out of 1023 companies for Quick Ratio. This puts China Energy Development Holdings in the upper half of its industry. The industry median Quick Ratio is 1.14. China Energy Development Holdings' value of 1.27 is 11.4% above this benchmark. Historically, China Energy Development Holdings' own Quick Ratio has ranged from 0.35 to 1.42 over the past decade. While the company's 10-year median is 0.53 vs. the industry median of 1.14, China Energy Development Holdings 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 an Oil & Gas company?
The median Quick Ratio among Oil & Gas companies is 1.14, based on 1,023 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 Energy Development Holdings's current Quick Ratio of 1.27 is 11.4% 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 Energy Development Holdings and its competitors. For the Oil & Gas industry, the median Quick Ratio is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Energy Development Holdings's current Quick Ratio is 1.27, which is 140% above median its own 10-year median of 0.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Energy Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Energy Development Holdings (HKSE:00228) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.92, compared to a current price of HK$0.85 — trading 56% below its estimated fair value. The current Quick Ratio is 1.27, which is 140% above median its 10-year median of 0.53 and 11.4% above the Oil & Gas industry median of 1.14. China Energy Development Holdings' overall GF Score™ is 62/100 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 Energy Development Holdings (HKSE:00228), the current Quick Ratio is 1.27 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 Energy Development Holdings (HKSE:00228) Overvalued in 2026?
Based on GuruFocus' analysis, China Energy Development Holdings stock appears to be undervalued.
The current stock price of HK$0.85 is trading 56% below its estimated GF Value™ of HK$1.92.
GuruFocus considers China Energy Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00228:
Quick Ratio: 1.27 (140% above median its 10-year median of 0.53)
GF Value™: HK$1.92 vs. price of HK$0.85 (56% below fair value)
Industry Position: 11.4% above the Oil & Gas median (#415 of 1023)
No single metric tells the full story. See the HKSE:00228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Energy Development Holdings Ltd is engaged in oil and gas exploration; distribution of natural gas; sales of food and beverages and money lending business in Hong Kong. The company is engaged in three segments, namely, The Exploration, Production and Distribution of Natural Gas segment engaged in the exploration, development, production and sales of natural gas and the usage of pipeline for distribution of natural gas. Majority of the revenue is derived from The Exploration, Production and Distribution of Natural Gas segment. Geographically, the company operates in PRC and Hong Kong region.
62GF Score
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