Chemring GroupLSE:CHG +5.27%85 Quick Ratio is 0.71 as of Apr. 2026, which is at its 10-year median of 0.71. GuruFocus rates LSE:CHG with a GF Score™ of 85/100 and a GF Value™ of £4.32 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 358 Aerospace & Defense companies, Chemring Group ranks worse than 86.87% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Chemring Group's quick ratio for the quarter that ended in Apr. 2026 was 0.71.
Chemring Group has a quick ratio of 0.71. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Chemring Group's Quick Ratio or its related term are showing as below:
LSE:CHG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.42 Med: 0.71 Max: 1.21
Current: 0.71
During the past 13 years, Chemring Group's highest Quick Ratio was 1.21. The lowest was 0.42. And the median was 0.71.
LSE:CHG's Quick Ratio is ranked worse than 86.87% of 358
companies
in the Aerospace & Defense industry
Industry Median: 1.295
vs LSE:CHG: 0.71
Chemring Group (LSE:CHG) 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.
Chemring Group Quick Ratio Related Terms
Chemring Group Quick Ratio Historical Data
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The historical data trend for Chemring Group's Quick Ratio can be seen below:
* 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.
For the Aerospace & Defense subindustry, Chemring 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.
Chemring Group Quick Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Chemring Group's Quick Ratio falls into.
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.
Chemring Group's Quick Ratio for the fiscal year that ended in Oct. 2025 is calculated as
* 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.
Chemring Group (LSE:CHG) has a Quick Ratio of 0.71 as of Apr. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Chemring Group and its competitors. This is near median its historical median of 0.71. Over the past decade, Chemring Group's Quick Ratio has ranged from 0.42 to 1.21. According to the industry distribution chart, Chemring Group ranks #311 out of 358 companies in the Aerospace & Defense industry, placing it in the top 86.9%.
Is Chemring Group's Quick Ratio too high?
Chemring Group's current Quick Ratio of 0.71 is near median its 10-year median of 0.71. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 1.21. The Aerospace & Defense industry median Quick Ratio is 1.30. Chemring Group's value of 0.71 is 45.2% below this industry median. Based on the distribution chart, Chemring Group ranks #311 out of 358 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Chemring Group has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Quick Ratio compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #311 out of 358 companies for Quick Ratio. This places Chemring Group in the lower half of its industry. The industry median Quick Ratio is 1.30. Chemring Group's value of 0.71 is 45.2% below this benchmark. Historically, Chemring Group's own Quick Ratio has ranged from 0.42 to 1.21 over the past decade. While the company's 10-year median is 0.71 vs. the industry median of 1.30, Chemring 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 an Aerospace & Defense company?
The median Quick Ratio among Aerospace & Defense companies is 1.30, based on 358 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. Chemring Group's current Quick Ratio of 0.71 is 45.2% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median Quick Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Quick Ratio is 0.71, which is near median its own 10-year median of 0.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.32, compared to a current price of £5.39 — trading 24.8% above its estimated fair value. The current Quick Ratio is 0.71, which is near median its 10-year median of 0.71 and 45.2% below the Aerospace & Defense industry median of 1.30. Chemring Group's overall GF Score™ is 85/100 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 Chemring Group (LSE:CHG), the current Quick Ratio is 0.71 as of Apr. 2026. 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.39 is trading 24.8% above its estimated GF Value™ of £4.32.
GuruFocus considers Chemring Group to be Modestly Overvalued.
Key valuation signals for LSE:CHG:
Quick Ratio: 0.71 (near median its 10-year median of 0.71)
GF Value™: £4.32 vs. price of £5.39 (24.8% above fair value)
Industry Position: 45.2% below the Aerospace & Defense median (#311 of 358)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
85GF Score
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