Xiamen Leading Optics Co has a quick ratio of 3.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for Xiamen Leading Optics Co's Quick Ratio or its related term are showing as below:
SHSE:605118'
s Quick Ratio Range Over the Past 10 Years
Min: 1.15 Med: 4.01 Max: 11.95
Current: 3.49
During the past 10 years, Xiamen Leading Optics Co's highest Quick Ratio was 11.95. The lowest was 1.15. And the median was 4.01.
SHSE:605118's Quick Ratio is ranked better than 83.21% of 2495
companies
in the Hardware industry
Industry Median: 1.46
vs SHSE:605118: 3.49
Xiamen Leading Optics Co (SHSE:605118) 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.
Xiamen Leading Optics Co Quick Ratio Related Terms
Xiamen Leading Optics 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.
For the Electronic Components subindustry, Xiamen Leading Optics 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.
Xiamen Leading Optics Co Quick Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics Co'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.
Xiamen Leading Optics Co's Quick Ratio for the fiscal year that ended in Dec. 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.
Xiamen Leading Optics Co (SHSE:605118) has a Quick Ratio of 3.49 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Xiamen Leading Optics Co and its competitors. This is 13% below median its historical median of 4.01. Over the past decade, Xiamen Leading Optics Co's Quick Ratio has ranged from 1.15 to 11.95. According to the industry distribution chart, Xiamen Leading Optics Co ranks #419 out of 2495 companies in the Hardware industry, placing it in the top 16.8%.
Is Xiamen Leading Optics Co's Quick Ratio too high?
Xiamen Leading Optics Co's current Quick Ratio of 3.49 is 13% below median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 11.95. The Hardware industry median Quick Ratio is 1.46. Xiamen Leading Optics Co's value of 3.49 is 139% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #419 out of 2495 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's Quick Ratio compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #419 out of 2495 companies for Quick Ratio. This places Xiamen Leading Optics Co in the top 17% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.46. Xiamen Leading Optics Co's value of 3.49 is 139% above this benchmark. Historically, Xiamen Leading Optics Co's own Quick Ratio has ranged from 1.15 to 11.95 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 1.46, Xiamen Leading Optics Co 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 a Hardware company?
The median Quick Ratio among Hardware companies is 1.46, based on 2,495 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. Xiamen Leading Optics Co's current Quick Ratio of 3.49 is 139% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median Quick Ratio is 1.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current Quick Ratio is 3.49, which is 13% below median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥27.99, compared to a current price of ¥33.62 — trading 20.1% above its estimated fair value. The current Quick Ratio is 3.49, which is 13% below median its 10-year median of 4.01 and 139% above the Hardware industry median of 1.46. Xiamen Leading Optics Co's overall GF Score™ is 88/100 with 4 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 Xiamen Leading Optics Co (SHSE:605118), the current Quick Ratio is 3.49 as of Mar. 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥33.62 is trading 20.1% above its estimated GF Value™ of ¥27.99.
GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.
Key valuation signals for SHSE:605118:
Quick Ratio: 3.49 (13% below median its 10-year median of 4.01)
GF Value™: ¥27.99 vs. price of ¥33.62 (20.1% above fair value)
Industry Position: 139% above the Hardware median (#419 of 2495)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
88GF Score
Get the complete analysis for SHSE:605118
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