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Guan Chao HoldingsHKSE:01872 -7.58%52 Quick Ratio is 1.83 as of Dec. 2025, which is 93% above its 10-year median of 0.95. GuruFocus rates HKSE:01872 with a GF Score™ of 52/100 and a GF Value™ of HK$0.39 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Guan Chao Holdings ranks better than 78.14% on this metric.
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
Guan Chao Holdings Quick Ratio Historical Data
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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.
HKSE:01872 vs CVNA, PAG, KMX: Quick Ratio Comparison
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 Quick Ratio vs 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. 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.
Guan Chao Holdings (HKSE:01872) has a Quick Ratio of 1.83 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Guan Chao Holdings and its competitors. This is 93% above median its historical median of 0.95. Over the past decade, Guan Chao Holdings' Quick Ratio has ranged from 0.32 to 1.83. According to the industry distribution chart, Guan Chao Holdings ranks #291 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 21.9%.
Is Guan Chao Holdings' Quick Ratio too high?
Guan Chao Holdings' current Quick Ratio of 1.83 is 93% above median its 10-year median of 0.95. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 1.83. The Vehicles & Parts industry median Quick Ratio is 1.06. Guan Chao Holdings' value of 1.83 is 72.6% above this industry median. Based on the distribution chart, Guan Chao Holdings ranks #291 out of 1331 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Guan Chao Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guan Chao Holdings' Quick Ratio compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Guan Chao Holdings ranks #291 out of 1331 companies for Quick Ratio. This places Guan Chao Holdings in the top 22% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.06. Guan Chao Holdings' value of 1.83 is 72.6% above this benchmark. Historically, Guan Chao Holdings' own Quick Ratio has ranged from 0.32 to 1.83 over the past decade. While the company's 10-year median is 0.95 vs. the industry median of 1.06, Guan Chao 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 a Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.06, based on 1,331 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. Guan Chao Holdings's current Quick Ratio of 1.83 is 72.6% 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 Guan Chao Holdings and its competitors. For the Vehicles & Parts 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. Guan Chao Holdings's current Quick Ratio is 1.83, which is 93% above median its own 10-year median of 0.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guan Chao Holdings stock overvalued right now?
Based on GuruFocus' analysis, Guan Chao Holdings (HKSE:01872) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$3.90 — trading 900% above its estimated fair value. The current Quick Ratio is 1.83, which is 93% above median its 10-year median of 0.95 and 72.6% above the Vehicles & Parts industry median of 1.06. Guan Chao Holdings' overall GF Score™ is 52/100 with 6 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 Guan Chao Holdings (HKSE:01872), the current Quick Ratio is 1.83 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 Guan Chao Holdings (HKSE:01872) Overvalued in 2026?
Based on GuruFocus' analysis, Guan Chao Holdings stock appears to be overvalued.
The current stock price of HK$3.90 is trading 900% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Guan Chao Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01872:
Quick Ratio: 1.83 (93% above median its 10-year median of 0.95)
GF Value™: HK$0.39 vs. price of HK$3.90 (900% above fair value)
Industry Position: 72.6% above the Vehicles & Parts median (#291 of 1331)
No single metric tells the full story. See the HKSE:01872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guan Chao Holdings Ltd is an investment holding company. The principal activities of the Group are sales of new parallel-import motor vehicles and pre-owned motor vehicles, provision of motor vehicle financing services and motor vehicle insurance agency services, sales of motor vehicle spare parts and accessories, and 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; Sales of spare parts and accessories; Sales of hair-care products; and manufacture and sales of lithium niobate crystals and lithium niobate thin films. The company generates the majority of its revenue from the sale of motor vehicles.
52GF Score
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