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Huadong Medicine CoSZSE:000963 -0.33%89 Quick Ratio is 1.23 as of Jun. 2026, which is 2% below its 10-year median of 1.26. GuruFocus rates SZSE:000963 with a GF Score™ of 89/100 and a GF Value™ of ¥37.38 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 995 Drug Manufacturers companies, Huadong Medicine Co ranks worse than 55.78% on this metric.
Huadong Medicine Co (SZSE:000963) 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.
Huadong Medicine Co Quick Ratio Related Terms
Huadong Medicine Co Quick Ratio Historical Data
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The historical data trend for Huadong Medicine Co'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 Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine 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.
Huadong Medicine Co Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Huadong Medicine 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.
Huadong Medicine 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.
Huadong Medicine Co (SZSE:000963) has a Quick Ratio of 1.23 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Huadong Medicine Co and its competitors. This is near median its historical median of 1.26. Over the past decade, Huadong Medicine Co's Quick Ratio has ranged from 1.13 to 1.59. According to the industry distribution chart, Huadong Medicine Co ranks #555 out of 995 companies in the Drug Manufacturers industry, placing it in the top 55.8%.
Is Huadong Medicine Co's Quick Ratio too high?
Huadong Medicine Co's current Quick Ratio of 1.23 is near median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 1.59. The Drug Manufacturers industry median Quick Ratio is 1.39. Huadong Medicine Co's value of 1.23 is 11.5% below this industry median. Based on the distribution chart, Huadong Medicine Co ranks #555 out of 995 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Huadong Medicine Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's Quick Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Huadong Medicine Co ranks #555 out of 995 companies for Quick Ratio. This places Huadong Medicine Co in the lower half of its industry. The industry median Quick Ratio is 1.39. Huadong Medicine Co's value of 1.23 is 11.5% below this benchmark. Historically, Huadong Medicine Co's own Quick Ratio has ranged from 1.13 to 1.59 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 1.39, Huadong Medicine 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 1.39, based on 995 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. Huadong Medicine Co's current Quick Ratio of 1.23 is 11.5% 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 Huadong Medicine Co and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huadong Medicine Co's current Quick Ratio is 1.23, which is near median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥37.38, compared to a current price of ¥27.37 — trading 26.8% below its estimated fair value. The current Quick Ratio is 1.23, which is near median its 10-year median of 1.26 and 11.5% below the Drug Manufacturers industry median of 1.39. Huadong Medicine Co's overall GF Score™ is 89/100 with 2 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 Huadong Medicine Co (SZSE:000963), the current Quick Ratio is 1.23 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 Huadong Medicine Co (SZSE:000963) Overvalued in 2026?
Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued.
The current stock price of ¥27.37 is trading 26.8% below its estimated GF Value™ of ¥37.38.
GuruFocus considers Huadong Medicine Co to be Modestly Undervalued.
Key valuation signals for SZSE:000963:
Quick Ratio: 1.23 (near median its 10-year median of 1.26)
GF Value™: ¥37.38 vs. price of ¥27.37 (26.8% below fair value)
Industry Position: 11.5% below the Drug Manufacturers median (#555 of 995)
No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
89GF Score
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