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Global New Material International Holdings (HKSE:06616) 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.
Global New Material International Holdings Quick Ratio Related Terms
Global New Material International 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.
Global New Material International Holdings Quick Ratio Chart
Global New Material International Holdings Annual Data
HKSE:06616 vs LIN, SHW, ECL: Quick Ratio Comparison
For the Specialty Chemicals subindustry, Global New Material International 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.
Global New Material International Holdings Quick Ratio vs Chemicals Industry
Global New Material International 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.
Global New Material International Holdings (HKSE:06616) has a Quick Ratio of 1.35 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Global New Material International Holdings and its competitors. This is 77% below median its historical median of 5.77. Over the past decade, Global New Material International Holdings' Quick Ratio has ranged from 1.20 to 12.21. According to the industry distribution chart, Global New Material International Holdings ranks #809 out of 1619 companies in the Chemicals industry, placing it in the top 50%.
Is Global New Material International Holdings' Quick Ratio too high?
Global New Material International Holdings' current Quick Ratio of 1.35 is 77% below median its 10-year median of 5.77. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 12.21. The Chemicals industry median Quick Ratio is 1.35. Global New Material International Holdings' value of 1.35 is 0% at this industry median. Based on the distribution chart, Global New Material International Holdings ranks #809 out of 1619 companies in the Chemicals industry, which is above the industry midpoint. Overall, Global New Material International Holdings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Global New Material International Holdings' Quick Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Global New Material International Holdings ranks #809 out of 1619 companies for Quick Ratio. This puts Global New Material International Holdings in the upper half of its industry. The industry median Quick Ratio is 1.35. Global New Material International Holdings' value of 1.35 is 0% at this benchmark. Historically, Global New Material International Holdings' own Quick Ratio has ranged from 1.20 to 12.21 over the past decade. While the company's 10-year median is 5.77 vs. the industry median of 1.35, Global New Material International Holdings has consistently been at 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 Chemicals company?
The median Quick Ratio among Chemicals companies is 1.35, based on 1,619 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. Global New Material International Holdings's current Quick Ratio of 1.35 is 0% at 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 Global New Material International Holdings and its competitors. For the Chemicals industry, the median Quick Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global New Material International Holdings's current Quick Ratio is 1.35, which is 77% below median its own 10-year median of 5.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global New Material International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Global New Material International Holdings (HKSE:06616) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$10.64, compared to a current price of HK$9.40 — trading 11.7% below its estimated fair value. The current Quick Ratio is 1.35, which is 77% below median its 10-year median of 5.77 and 0% at the Chemicals industry median of 1.35. Global New Material International Holdings' overall GF Score™ is 84/100 with 13 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 Global New Material International Holdings (HKSE:06616), the current Quick Ratio is 1.35 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 Global New Material International Holdings (HKSE:06616) Overvalued in 2026?
Based on GuruFocus' analysis, Global New Material International Holdings stock appears to be undervalued.
The current stock price of HK$9.40 is trading 11.7% below its estimated GF Value™ of HK$10.64.
GuruFocus considers Global New Material International Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:06616:
Quick Ratio: 1.35 (77% below median its 10-year median of 5.77)
GF Value™: HK$10.64 vs. price of HK$9.40 (11.7% below fair value)
Industry Position: 0% at the Chemicals median (#809 of 1619)
No single metric tells the full story. See the HKSE:06616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global New Material International Holdings Ltd is engaged in the business of production and sales of pearlescent pigment products and functional mica and related products in the PRC and the Republic of Korea. Its segments are PRC Business Operation, Korea Business Operation and Germany Business Operation. The company generates the majority of its revenue from the sale of pearlescent pigment products. It generates the majority of its revenue from PRC Business Operation from the sale of pearlescent pigment products. The PRC Business Operation is into the manufacturing and sales of pearlescent pigment and functional mica filler in the PRC. Korea Business Operation is engaged in the manufacture and sale of pearlescent pigment in the Republic of Korea.
84GF Score
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