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Sterling Group Holdings (HKSE:01825) 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.
Sterling Group Holdings Quick Ratio Related Terms
Sterling Group 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.
HKSE:01825 vs RL, LEVI, VFC: Quick Ratio Comparison
For the Apparel Manufacturing subindustry, Sterling Group 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.
Sterling Group Holdings Quick Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sterling Group Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sterling Group Holdings'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.
Sterling Group Holdings's Quick Ratio for the fiscal year that ended in Mar. 2026 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.
Sterling Group Holdings (HKSE:01825) has a Quick Ratio of 0.47 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Sterling Group Holdings and its competitors. This is 31% below median its historical median of 0.68. Over the past decade, Sterling Group Holdings' Quick Ratio has ranged from 0.36 to 0.93.
Is Sterling Group Holdings' Quick Ratio too high?
Sterling Group Holdings' current Quick Ratio of 0.47 is 31% below median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 0.93. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.12. Sterling Group Holdings' value of 0.47 is 57.8% below this industry median. Overall, Sterling Group Holdings has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Sterling Group Holdings' Quick Ratio compare to RL and LEVI?
Sterling Group Holdings' Quick Ratio of 0.47 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Quick Ratio is 1.12. Sterling Group Holdings' value of 0.47 is 57.8% below this benchmark. Historically, Sterling Group Holdings' own Quick Ratio has ranged from 0.36 to 0.93 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 1.12, Sterling Group 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 Manufacturing - Apparel & Accessories company?
The median Quick Ratio among Manufacturing - Apparel & Accessories companies is 1.12, based on 1,068 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. Sterling Group Holdings's current Quick Ratio of 0.47 is 57.8% 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 Sterling Group Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Group Holdings's current Quick Ratio is 0.47, which is 31% below median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Group Holdings stock overvalued right now?
Sterling Group Holdings (HKSE:01825) has a current Quick Ratio of 0.47. The stock's GF Value™ is HK$0.52, compared to a current price of HK$8.08 — trading 1453.8% above its estimated fair value. The current Quick Ratio is 0.47, which is 31% below median its 10-year median of 0.68 and 57.8% below the Manufacturing - Apparel & Accessories industry median of 1.12. Sterling Group Holdings' overall GF Score™ is 45/100 with 8 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 Sterling Group Holdings (HKSE:01825), the current Quick Ratio is 0.47 as of Mar. 2026. 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 Sterling Group Holdings (HKSE:01825) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Group Holdings stock appears to be overvalued.
The current stock price of HK$8.08 is trading 1453.8% above its estimated GF Value™ of HK$0.52.
Key valuation signals for HKSE:01825:
Quick Ratio: 0.47 (31% below median its 10-year median of 0.68)
GF Value™: HK$0.52 vs. price of HK$8.08 (1453.8% above fair value)
Industry Position: 57.8% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the HKSE:01825 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Group Holdings Ltd is an apparel manufacturer headquartered in Hong Kong, providing a one-stop apparel manufacturing solution for its customers. The Group manufactures a wide range of apparel products such as outerwear, bottoms, tops, and other products. The company operates through two segments: Manufacturing and trading of apparel products, and Licensing of trademarks for licensing income. It generates the majority of its revenue from the Manufacturing and trading of apparel products. Its geographic areas are Hong Kong, the United States, and Others. The group generates the majority of its revenue from the United States.
45GF Score
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