Guan Chao Holdings has a quick ratio of 1.28. It generally indicates good short-term financial strength.
The historical rank and industry rank for Guan Chao Holdings's Quick Ratio or its related term are showing as below:
HKSE:01872'
s Quick Ratio Range Over the Past 10 Years
Min: 0.32 Med: 0.94 Max: 1.38
Current: 1.38
During the past 9 years, Guan Chao Holdings's highest Quick Ratio was 1.38. The lowest was 0.32. And the median was 0.94.
HKSE:01872's Quick Ratio is ranked better than 66.31% of 1312
companies
in the Vehicles & Parts industry
Industry Median: 1.03
vs HKSE:01872: 1.38
Guan Chao Holdings Quick Ratio Historical Data
The historical data trend for Guan Chao Holdings's Quick Ratio can be seen below:
* 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.
Competitive Comparison of Guan Chao Holdings's Quick Ratio
For the Auto & Truck Dealerships subindustry, Guan Chao 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.
Guan Chao Holdings's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Guan Chao Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Guan Chao 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.
Guan Chao Holdings's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
Guan Chao Holdings (HKSE:01872) 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.
Guan Chao Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Guan Chao Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Guan Chao Holdings Ltd is a multi-brand car dealership and importer of new and pre-owned cars in Singapore. The company is engaged in the sale of new parallel-import motor vehicles and pre-owned motor vehicles, the provision of motor vehicle financing services and motor vehicle insurance agency services, the sale of motor vehicle spare parts and accessories, and the provision of motor vehicle leasing services. Its segment comprises Sales of motor vehicles and provision of related services; Rental income from operating lease of motor vehicles; and Sales of spare parts and accessories.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:01872 has been successfully added to your 