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Cathay Chemical Works (TPE:1713) 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.
Cathay Chemical Works Quick Ratio Related Terms
Cathay Chemical Works Quick Ratio Historical Data
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The historical data trend for Cathay Chemical Works'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 Specialty Chemicals subindustry, Cathay Chemical Works'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.
Cathay Chemical Works Quick Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Chemical Works's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cathay Chemical Works'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.
Cathay Chemical Works'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.
Cathay Chemical Works (TPE:1713) has a Quick Ratio of 1.42 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Cathay Chemical Works and its competitors. This is 87% below median its historical median of 11.10. Over the past decade, Cathay Chemical Works' Quick Ratio has ranged from 1.29 to 27.00. According to the industry distribution chart, Cathay Chemical Works ranks #768 out of 1615 companies in the Chemicals industry, placing it in the top 47.6%.
Is Cathay Chemical Works' Quick Ratio too high?
Cathay Chemical Works' current Quick Ratio of 1.42 is 87% below median its 10-year median of 11.10. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 27.00. The Chemicals industry median Quick Ratio is 1.35. Cathay Chemical Works' value of 1.42 is 5.2% above this industry median. Based on the distribution chart, Cathay Chemical Works ranks #768 out of 1615 companies in the Chemicals industry, which is above the industry midpoint. Overall, Cathay Chemical Works has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cathay Chemical Works' Quick Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cathay Chemical Works ranks #768 out of 1615 companies for Quick Ratio. This puts Cathay Chemical Works in the upper half of its industry. The industry median Quick Ratio is 1.35. Cathay Chemical Works' value of 1.42 is 5.2% above this benchmark. Historically, Cathay Chemical Works' own Quick Ratio has ranged from 1.29 to 27.00 over the past decade. While the company's 10-year median is 11.10 vs. the industry median of 1.35, Cathay Chemical Works 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 Chemicals company?
The median Quick Ratio among Chemicals companies is 1.35, based on 1,615 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. Cathay Chemical Works's current Quick Ratio of 1.42 is 5.2% 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 Cathay Chemical Works and its competitors. For the Chemicals industry, the median Quick Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Chemical Works's current Quick Ratio is 1.42, which is 87% below median its own 10-year median of 11.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Chemical Works stock overvalued right now?
Based on GuruFocus' analysis, Cathay Chemical Works (TPE:1713) is currently considered Fairly Valued. The stock's GF Value™ is NT$47.78, compared to a current price of NT$43.45 — trading 9.1% below its estimated fair value. The current Quick Ratio is 1.42, which is 87% below median its 10-year median of 11.10 and 5.2% above the Chemicals industry median of 1.35. Cathay Chemical Works' overall GF Score™ is 74/100 with 6 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 Cathay Chemical Works (TPE:1713), the current Quick Ratio is 1.42 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 Cathay Chemical Works (TPE:1713) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Chemical Works stock appears to be undervalued.
The current stock price of NT$43.45 is trading 9.1% below its estimated GF Value™ of NT$47.78.
GuruFocus considers Cathay Chemical Works to be Fairly Valued.
Key valuation signals for TPE:1713:
Quick Ratio: 1.42 (87% below median its 10-year median of 11.10)
GF Value™: NT$47.78 vs. price of NT$43.45 (9.1% below fair value)
Industry Position: 5.2% above the Chemicals median (#768 of 1615)
No single metric tells the full story. See the TPE:1713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Chemical Works Inc Company's mainly business is the manufacture and sale of sodium hydrosulfite, zinc oxide, sodium formaldehyde sulfoxylate, zinc dust and so on. It is the sole operating department. The company has presence in Taiwan, Asia, America, Europe, New Zealand and Australia. The majority of revenue comes from Taiwan.
74GF Score
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