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Hongcheng Environmental Technology Co has a quick ratio of 0.94. It indicates that the company cannot currently fully pay back its current liabilities.
Hongcheng Environmental Technology Co (HKSE:02265) 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.
Hongcheng Environmental Technology Co Quick Ratio Related Terms
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co Quick Ratio Chart
HKSE:02265 vs WM, RSG, WCN: Quick Ratio Comparison
For the Waste Management subindustry, Hongcheng Environmental Technology Co'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.
Hongcheng Environmental Technology Co Quick Ratio vs Waste Management Industry
For the Waste Management industry and Industrials sector, Hongcheng Environmental Technology Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Hongcheng Environmental Technology Co's Quick Ratio falls into.
Hongcheng Environmental Technology Co 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.
Hongcheng Environmental Technology Co (HKSE:02265) has a Quick Ratio of 0.94 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Hongcheng Environmental Technology Co and its competitors. This is near median its historical median of 0.92. Over the past decade, Hongcheng Environmental Technology Co's Quick Ratio has ranged from 0.60 to 3.59. According to the industry distribution chart, Hongcheng Environmental Technology Co ranks #170 out of 248 companies in the Waste Management industry, placing it in the top 68.5%.
Is Hongcheng Environmental Technology Co's Quick Ratio too high?
Hongcheng Environmental Technology Co's current Quick Ratio of 0.94 is near median its 10-year median of 0.92. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 3.59. The Waste Management industry median Quick Ratio is 1.37. Hongcheng Environmental Technology Co's value of 0.94 is 31.4% below this industry median. Based on the distribution chart, Hongcheng Environmental Technology Co ranks #170 out of 248 companies in the Waste Management industry, which is below the industry midpoint. Overall, Hongcheng Environmental Technology Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hongcheng Environmental Technology Co's Quick Ratio compare to WM and RSG?
According to the Waste Management industry distribution chart, Hongcheng Environmental Technology Co ranks #170 out of 248 companies for Quick Ratio. This places Hongcheng Environmental Technology Co in the lower half of its industry. The industry median Quick Ratio is 1.37. Hongcheng Environmental Technology Co's value of 0.94 is 31.4% below this benchmark. Historically, Hongcheng Environmental Technology Co's own Quick Ratio has ranged from 0.60 to 3.59 over the past decade. While the company's 10-year median is 0.92 vs. the industry median of 1.37, Hongcheng Environmental Technology Co 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 Waste Management company?
The median Quick Ratio among Waste Management companies is 1.37, based on 248 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. Hongcheng Environmental Technology Co's current Quick Ratio of 0.94 is 31.4% 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 Hongcheng Environmental Technology Co and its competitors. For the Waste Management industry, the median Quick Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongcheng Environmental Technology Co's current Quick Ratio is 0.94, which is near median its own 10-year median of 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongcheng Environmental Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co (HKSE:02265) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.61, compared to a current price of HK$1.07 — trading 33.5% below its estimated fair value. The current Quick Ratio is 0.94, which is near median its 10-year median of 0.92 and 31.4% below the Waste Management industry median of 1.37. Hongcheng Environmental Technology Co's overall GF Score™ is 80/100 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 Hongcheng Environmental Technology Co (HKSE:02265), the current Quick Ratio is 0.94 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 Hongcheng Environmental Technology Co (HKSE:02265) Overvalued in 2026?
Based on GuruFocus' analysis, Hongcheng Environmental Technology Co stock appears to be undervalued.
The current stock price of HK$1.07 is trading 33.5% below its estimated GF Value™ of HK$1.61.
GuruFocus considers Hongcheng Environmental Technology Co to be Possible Value Trap.
Key valuation signals for HKSE:02265:
Quick Ratio: 0.94 (near median its 10-year median of 0.92)
GF Value™: HK$1.61 vs. price of HK$1.07 (33.5% below fair value)
Industry Position: 31.4% below the Waste Management median (#170 of 248)
No single metric tells the full story. See the HKSE:02265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongcheng Environmental Technology Co Ltd is an investment holding company. It is engaged in (i) the provision of gold mine hazardous waste treatment services and sales of pyrite concentrate, and (ii) the production and sales of products from reprocessing of pyrite concentrate and sulphuric acid; and (iii) the production and sales of magnesium fertiliser in the PRC. It has two reportable segments: Hazardous waste treatment and recycling, and Reprocessing of pyrite concentrate and Production of magnesium fertiliser. Key revenue is generated from the hazardous waste treatment and recycling segment.
80GF Score
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