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Northeast Pharmaceutical Group Co (SZSE:000597) 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.
Northeast Pharmaceutical Group Co Quick Ratio Related Terms
Northeast Pharmaceutical Group 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.
Northeast Pharmaceutical Group Co Quick Ratio Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Northeast Pharmaceutical Group 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.
Northeast Pharmaceutical Group Co Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Northeast Pharmaceutical Group Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Northeast Pharmaceutical Group Co's Quick Ratio falls into.
Northeast Pharmaceutical Group Co 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.
Northeast Pharmaceutical Group Co (SZSE:000597) has a Quick Ratio of 0.96 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Northeast Pharmaceutical Group Co and its competitors. This is 23% above median its historical median of 0.78. Over the past decade, Northeast Pharmaceutical Group Co's Quick Ratio has ranged from 0.58 to 0.98. According to the industry distribution chart, Northeast Pharmaceutical Group Co ranks #661 out of 998 companies in the Drug Manufacturers industry, placing it in the top 66.2%.
Is Northeast Pharmaceutical Group Co's Quick Ratio too high?
Northeast Pharmaceutical Group Co's current Quick Ratio of 0.96 is 23% above median its 10-year median of 0.78. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 0.98. The Drug Manufacturers industry median Quick Ratio is 1.40. Northeast Pharmaceutical Group Co's value of 0.96 is 31.4% below this industry median. Based on the distribution chart, Northeast Pharmaceutical Group Co ranks #661 out of 998 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Northeast Pharmaceutical Group Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northeast Pharmaceutical Group Co's Quick Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Northeast Pharmaceutical Group Co ranks #661 out of 998 companies for Quick Ratio. This places Northeast Pharmaceutical Group Co in the lower half of its industry. The industry median Quick Ratio is 1.40. Northeast Pharmaceutical Group Co's value of 0.96 is 31.4% below this benchmark. Historically, Northeast Pharmaceutical Group Co's own Quick Ratio has ranged from 0.58 to 0.98 over the past decade. While the company's 10-year median is 0.78 vs. the industry median of 1.40, Northeast Pharmaceutical Group Co 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 Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.40, based on 998 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. Northeast Pharmaceutical Group Co's current Quick Ratio of 0.96 is 31.4% 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 Northeast Pharmaceutical Group Co and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northeast Pharmaceutical Group Co's current Quick Ratio is 0.96, which is 23% above median its own 10-year median of 0.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northeast Pharmaceutical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Northeast Pharmaceutical Group Co (SZSE:000597) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.21, compared to a current price of ¥4.74 — trading 12.6% above its estimated fair value. The current Quick Ratio is 0.96, which is 23% above median its 10-year median of 0.78 and 31.4% below the Drug Manufacturers industry median of 1.40. Northeast Pharmaceutical Group Co's overall GF Score™ is 62/100 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 Northeast Pharmaceutical Group Co (SZSE:000597), the current Quick Ratio is 0.96 as of Jun. 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 Northeast Pharmaceutical Group Co (SZSE:000597) Overvalued in 2026?
Based on GuruFocus' analysis, Northeast Pharmaceutical Group Co stock appears to be overvalued.
The current stock price of ¥4.74 is trading 12.6% above its estimated GF Value™ of ¥4.21.
GuruFocus considers Northeast Pharmaceutical Group Co to be Modestly Overvalued.
Key valuation signals for SZSE:000597:
Quick Ratio: 0.96 (23% above median its 10-year median of 0.78)
GF Value™: ¥4.21 vs. price of ¥4.74 (12.6% above fair value)
Industry Position: 31.4% below the Drug Manufacturers median (#661 of 998)
No single metric tells the full story. See the SZSE:000597 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northeast Pharmaceutical Group Co Ltd is engaged in the production and distribution of ammonium phosphate, sulfuric acid, cement, compound fertilizer, bromine, raw salt, and diammonium phosphate.
62GF Score
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