What is Lianhe Sowell International Group Quick Ratio?
Lianhe Sowell International GroupLHSW -10.37%20 Quick Ratio is 1.26 as of Sep. 2025, which is 13% below its 10-year median of 1.44. GuruFocus rates LHSW with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 2,865 Software companies, Lianhe Sowell International Group ranks worse than 64.64% on this metric.
LHSW'
s Quick Ratio Range Over the Past 10 Years
Min: 1.24 Med: 1.44 Max: 1.96
Current: 1.26
During the past 4 years, Lianhe Sowell International Group's highest Quick Ratio was 1.96. The lowest was 1.24. And the median was 1.44.
LHSW's Quick Ratio is ranked worse than 64.64% of 2865
companies
in the Software industry
Industry Median: 1.7
vs LHSW: 1.26
Lianhe Sowell International Group (NAS:LHSW) 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.
Lianhe Sowell International Group Quick Ratio Related Terms
Lianhe Sowell International 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.
Lianhe Sowell International Group Quick Ratio Chart
Lianhe Sowell International Group Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Quick Ratio
1.96
1.55
1.42
1.24
Lianhe Sowell International Group Semi-Annual Data
For the Software - Infrastructure subindustry, Lianhe Sowell International 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.
Lianhe Sowell International Group Quick Ratio vs Software Industry
For the Software industry and Technology sector, Lianhe Sowell International Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lianhe Sowell International Group's Quick Ratio falls into.
Lianhe Sowell International 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.
Lianhe Sowell International Group (LHSW) has a Quick Ratio of 1.26 as of Sep. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Lianhe Sowell International Group and its competitors. This is 13% below median its historical median of 1.44. Over the past decade, Lianhe Sowell International Group's Quick Ratio has ranged from 1.24 to 1.96. According to the industry distribution chart, Lianhe Sowell International Group ranks #1852 out of 2865 companies in the Software industry, placing it in the top 64.6%.
Is Lianhe Sowell International Group's Quick Ratio too high?
Lianhe Sowell International Group's current Quick Ratio of 1.26 is 13% below median its 10-year median of 1.44. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 1.96. The Software industry median Quick Ratio is 1.70. Lianhe Sowell International Group's value of 1.26 is 25.9% below this industry median. Based on the distribution chart, Lianhe Sowell International Group ranks #1852 out of 2865 companies in the Software industry, which is below the industry midpoint. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Quick Ratio compare to SDCH and DTSS?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #1852 out of 2865 companies for Quick Ratio. This places Lianhe Sowell International Group in the lower half of its industry. The industry median Quick Ratio is 1.70. Lianhe Sowell International Group's value of 1.26 is 25.9% below this benchmark. Historically, Lianhe Sowell International Group's own Quick Ratio has ranged from 1.24 to 1.96 over the past decade. While the company's 10-year median is 1.44 vs. the industry median of 1.70, Lianhe Sowell International Group 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 Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,865 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. Lianhe Sowell International Group's current Quick Ratio of 1.26 is 25.9% 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current Quick Ratio is 1.26, which is 13% below median its own 10-year median of 1.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Quick Ratio of 1.26. The current Quick Ratio is 1.26, which is 13% below median its 10-year median of 1.44 and 25.9% below the Software industry median of 1.70. Lianhe Sowell International Group's overall GF Score™ is 20/100 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 Lianhe Sowell International Group (LHSW), the current Quick Ratio is 1.26 as of Sep. 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.
Lianhe Sowell International Group Business Description
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score
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