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Changzhou Xiangming Intelligent Drive System (SZSE:301226) 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.
Changzhou Xiangming Intelligent Drive System Quick Ratio Related Terms
Changzhou Xiangming Intelligent Drive System 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.
Changzhou Xiangming Intelligent Drive System Quick Ratio Chart
Changzhou Xiangming Intelligent Drive System Annual Data
SZSE:301226 vs APH, GLW, TEL: Quick Ratio Comparison
For the Electronic Components subindustry, Changzhou Xiangming Intelligent Drive System'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.
Changzhou Xiangming Intelligent Drive System Quick Ratio vs Hardware Industry
Changzhou Xiangming Intelligent Drive System 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.
Changzhou Xiangming Intelligent Drive System (SZSE:301226) has a Quick Ratio of 4.48 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Changzhou Xiangming Intelligent Drive System and its competitors. This is near median its historical median of 4.11. Over the past decade, Changzhou Xiangming Intelligent Drive System's Quick Ratio has ranged from 1.68 to 6.13. According to the industry distribution chart, Changzhou Xiangming Intelligent Drive System ranks #274 out of 2502 companies in the Hardware industry, placing it in the top 11%.
Is Changzhou Xiangming Intelligent Drive System's Quick Ratio too high?
Changzhou Xiangming Intelligent Drive System's current Quick Ratio of 4.48 is near median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 6.13. The Hardware industry median Quick Ratio is 1.40. Changzhou Xiangming Intelligent Drive System's value of 4.48 is 220% above this industry median. Based on the distribution chart, Changzhou Xiangming Intelligent Drive System ranks #274 out of 2502 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Changzhou Xiangming Intelligent Drive System has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Changzhou Xiangming Intelligent Drive System's Quick Ratio compare to APH and GLW?
According to the Hardware industry distribution chart, Changzhou Xiangming Intelligent Drive System ranks #274 out of 2502 companies for Quick Ratio. This places Changzhou Xiangming Intelligent Drive System in the top 11% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.40. Changzhou Xiangming Intelligent Drive System's value of 4.48 is 220% above this benchmark. Historically, Changzhou Xiangming Intelligent Drive System's own Quick Ratio has ranged from 1.68 to 6.13 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 1.40, Changzhou Xiangming Intelligent Drive System 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 1.40, based on 2,502 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. Changzhou Xiangming Intelligent Drive System's current Quick Ratio of 4.48 is 220% 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 Changzhou Xiangming Intelligent Drive System and its competitors. For the Hardware 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. Changzhou Xiangming Intelligent Drive System's current Quick Ratio is 4.48, which is near median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changzhou Xiangming Intelligent Drive System stock overvalued right now?
Based on GuruFocus' analysis, Changzhou Xiangming Intelligent Drive System (SZSE:301226) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥24.90, compared to a current price of ¥30.24 — trading 21.4% above its estimated fair value. The current Quick Ratio is 4.48, which is near median its 10-year median of 4.11 and 220% above the Hardware industry median of 1.40. Changzhou Xiangming Intelligent Drive System's overall GF Score™ is 73/100 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 Changzhou Xiangming Intelligent Drive System (SZSE:301226), the current Quick Ratio is 4.48 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 Changzhou Xiangming Intelligent Drive System (SZSE:301226) Overvalued in 2026?
Based on GuruFocus' analysis, Changzhou Xiangming Intelligent Drive System stock appears to be overvalued.
The current stock price of ¥30.24 is trading 21.4% above its estimated GF Value™ of ¥24.90.
GuruFocus considers Changzhou Xiangming Intelligent Drive System to be Modestly Overvalued.
Key valuation signals for SZSE:301226:
Quick Ratio: 4.48 (near median its 10-year median of 4.11)
GF Value™: ¥24.90 vs. price of ¥30.24 (21.4% above fair value)
Industry Position: 220% above the Hardware median (#274 of 2502)
No single metric tells the full story. See the SZSE:301226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changzhou Xiangming Intelligent Drive System Corp is engaged in the Research and development, production and sales of micro motors, fans and intelligent components.
73GF Score
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