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Beng Soon Machinery Holdings (HKSE:01987) 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.
Beng Soon Machinery Holdings Quick Ratio Related Terms
Beng Soon Machinery 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:01987 vs PWR, FIX, EME: Quick Ratio Comparison
For the Engineering & Construction subindustry, Beng Soon Machinery 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.
Beng Soon Machinery Holdings Quick Ratio vs Construction Industry
For the Construction industry and Industrials sector, Beng Soon Machinery Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Beng Soon Machinery Holdings's Quick Ratio falls into.
Beng Soon Machinery 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.
Beng Soon Machinery Holdings (HKSE:01987) has a Quick Ratio of 4.70 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Beng Soon Machinery Holdings and its competitors. This is near median its historical median of 4.90. Over the past decade, Beng Soon Machinery Holdings' Quick Ratio has ranged from 1.16 to 6.73. According to the industry distribution chart, Beng Soon Machinery Holdings ranks #97 out of 1789 companies in the Construction industry, placing it in the top 5.4%.
Is Beng Soon Machinery Holdings' Quick Ratio too high?
Beng Soon Machinery Holdings' current Quick Ratio of 4.70 is near median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 6.73. The Construction industry median Quick Ratio is 1.29. Beng Soon Machinery Holdings' value of 4.70 is 264.3% above this industry median. Based on the distribution chart, Beng Soon Machinery Holdings ranks #97 out of 1789 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Beng Soon Machinery Holdings has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Beng Soon Machinery Holdings' Quick Ratio compare to PWR and FIX?
According to the Construction industry distribution chart, Beng Soon Machinery Holdings ranks #97 out of 1789 companies for Quick Ratio. This places Beng Soon Machinery Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.29. Beng Soon Machinery Holdings' value of 4.70 is 264.3% above this benchmark. Historically, Beng Soon Machinery Holdings' own Quick Ratio has ranged from 1.16 to 6.73 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 1.29, Beng Soon Machinery 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 Construction company?
The median Quick Ratio among Construction companies is 1.29, based on 1,789 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. Beng Soon Machinery Holdings's current Quick Ratio of 4.70 is 264.3% 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 Beng Soon Machinery Holdings and its competitors. For the Construction industry, the median Quick Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beng Soon Machinery Holdings's current Quick Ratio is 4.70, which is near median its own 10-year median of 4.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beng Soon Machinery Holdings stock overvalued right now?
Based on GuruFocus' analysis, Beng Soon Machinery Holdings (HKSE:01987) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.22, compared to a current price of HK$0.25 — trading 11.4% above its estimated fair value. The current Quick Ratio is 4.70, which is near median its 10-year median of 4.90 and 264.3% above the Construction industry median of 1.29. Beng Soon Machinery Holdings' overall GF Score™ is 65/100 with 2 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 Beng Soon Machinery Holdings (HKSE:01987), the current Quick Ratio is 4.70 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 Beng Soon Machinery Holdings (HKSE:01987) Overvalued in 2026?
Based on GuruFocus' analysis, Beng Soon Machinery Holdings stock appears to be overvalued.
The current stock price of HK$0.25 is trading 11.4% above its estimated GF Value™ of HK$0.22.
GuruFocus considers Beng Soon Machinery Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01987:
Quick Ratio: 4.70 (near median its 10-year median of 4.90)
GF Value™: HK$0.22 vs. price of HK$0.25 (11.4% above fair value)
Industry Position: 264.3% above the Construction median (#97 of 1789)
No single metric tells the full story. See the HKSE:01987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beng Soon Machinery Holdings Ltd is an investment holding company engaged in the provision of demolition services. The Group is a demolition services provider in Singapore, which also (i) sells salvage materials removed from the demolition sites to third-party salvage buyers; (ii) deposits earth from earth providers at its demolition sites for landfilling purposes; and (iii) leases and sells machinery to third parties. The company derives a majority of its revenue from Singapore.
65GF Score
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