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China Xinhua Education Group (HKSE:02779) 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.
China Xinhua Education Group Quick Ratio Related Terms
China Xinhua Education Group 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:02779 vs EDU, TAL, LAUR: Quick Ratio Comparison
For the Education & Training Services subindustry, China Xinhua Education Group'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.
China Xinhua Education Group Quick Ratio vs Education Industry
For the Education industry and Consumer Defensive sector, China Xinhua Education Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where China Xinhua Education Group's Quick Ratio falls into.
China Xinhua Education Group 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.
China Xinhua Education Group (HKSE:02779) has a Quick Ratio of 1.57 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Xinhua Education Group and its competitors. This is near median its historical median of 1.70. Over the past decade, China Xinhua Education Group's Quick Ratio has ranged from 1.05 to 6.07. According to the industry distribution chart, China Xinhua Education Group ranks #116 out of 262 companies in the Education industry, placing it in the top 44.3%.
Is China Xinhua Education Group's Quick Ratio too high?
China Xinhua Education Group's current Quick Ratio of 1.57 is near median its 10-year median of 1.70. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 6.07. The Education industry median Quick Ratio is 1.38. China Xinhua Education Group's value of 1.57 is 14.2% above this industry median. Based on the distribution chart, China Xinhua Education Group ranks #116 out of 262 companies in the Education industry, which is above the industry midpoint. Overall, China Xinhua Education Group has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Xinhua Education Group's Quick Ratio compare to EDU and TAL?
According to the Education industry distribution chart, China Xinhua Education Group ranks #116 out of 262 companies for Quick Ratio. This puts China Xinhua Education Group in the upper half of its industry. The industry median Quick Ratio is 1.38. China Xinhua Education Group's value of 1.57 is 14.2% above this benchmark. Historically, China Xinhua Education Group's own Quick Ratio has ranged from 1.05 to 6.07 over the past decade. While the company's 10-year median is 1.70 vs. the industry median of 1.38, China Xinhua Education Group 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 an Education company?
The median Quick Ratio among Education companies is 1.38, based on 262 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. China Xinhua Education Group's current Quick Ratio of 1.57 is 14.2% 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 China Xinhua Education Group and its competitors. For the Education industry, the median Quick Ratio is 1.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Xinhua Education Group's current Quick Ratio is 1.57, which is near median its own 10-year median of 1.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Xinhua Education Group stock overvalued right now?
Based on GuruFocus' analysis, China Xinhua Education Group (HKSE:02779) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.68, compared to a current price of HK$0.30 — trading 56.6% below its estimated fair value. The current Quick Ratio is 1.57, which is near median its 10-year median of 1.70 and 14.2% above the Education industry median of 1.38. China Xinhua Education Group's overall GF Score™ is 60/100 with 7 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 China Xinhua Education Group (HKSE:02779), the current Quick Ratio is 1.57 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 China Xinhua Education Group (HKSE:02779) Overvalued in 2026?
Based on GuruFocus' analysis, China Xinhua Education Group stock appears to be undervalued.
The current stock price of HK$0.30 is trading 56.6% below its estimated GF Value™ of HK$0.68.
GuruFocus considers China Xinhua Education Group to be Possible Value Trap.
Key valuation signals for HKSE:02779:
Quick Ratio: 1.57 (near median its 10-year median of 1.70)
GF Value™: HK$0.68 vs. price of HK$0.30 (56.6% below fair value)
Industry Position: 14.2% above the Education median (#116 of 262)
No single metric tells the full story. See the HKSE:02779 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Xinhua Education Group Ltd is principally engaged in the provision of education services in China. It mainly provides private formal higher education and formal secondary vocational education in the Yangtze River Delta. It currently operates four private schools, namely Anhui Xinhua University, School of Clinical Medicine jointly operated by the Group and Anhui Medical University, Hongshan College, a college jointly operated by the Group and Nanjing University of Finance & Economics Hongshan College, and Anhui Xinhua School. The company generates revenues from tuition fees, and boarding fees out of which tuition fees contribute the majority part.
60GF Score
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