Li Cheng Enterprise CoTPE:4426 -0.96%55 Quick Ratio is 0.64 as of Dec. 2025, which is 54% below its 10-year median of 1.39. GuruFocus rates TPE:4426 with a GF Score™ of 55/100 and a GF Value™ of NT$10.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,061 Manufacturing - Apparel & Accessories companies, Li Cheng Enterprise Co ranks worse than 75.21% on this metric.
Li Cheng Enterprise Co (TPE:4426) 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.
Li Cheng Enterprise Co Quick Ratio Related Terms
Li Cheng Enterprise 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.
Li Cheng Enterprise Co Quick Ratio Competitor Comparison
For the Textile Manufacturing subindustry, Li Cheng Enterprise 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.
Li Cheng Enterprise Co Quick Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Li Cheng Enterprise Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Li Cheng Enterprise 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.
Li Cheng Enterprise 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.
Li Cheng Enterprise Co (TPE:4426) has a Quick Ratio of 0.64 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Li Cheng Enterprise Co and its competitors. This is 54% below median its historical median of 1.39. Over the past decade, Li Cheng Enterprise Co's Quick Ratio has ranged from 0.64 to 2.30. According to the industry distribution chart, Li Cheng Enterprise Co ranks #798 out of 1061 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 75.2%.
Is Li Cheng Enterprise Co's Quick Ratio too high?
Li Cheng Enterprise Co's current Quick Ratio of 0.64 is 54% below median its 10-year median of 1.39. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 2.30. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.11. Li Cheng Enterprise Co's value of 0.64 is 42.3% below this industry median. Based on the distribution chart, Li Cheng Enterprise Co ranks #798 out of 1061 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Li Cheng Enterprise Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Li Cheng Enterprise Co's Quick Ratio compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Li Cheng Enterprise Co ranks #798 out of 1061 companies for Quick Ratio. This places Li Cheng Enterprise Co in the lower half of its industry. The industry median Quick Ratio is 1.11. Li Cheng Enterprise Co's value of 0.64 is 42.3% below this benchmark. Historically, Li Cheng Enterprise Co's own Quick Ratio has ranged from 0.64 to 2.30 over the past decade. While the company's 10-year median is 1.39 vs. the industry median of 1.11, Li Cheng Enterprise 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 Manufacturing - Apparel & Accessories company?
The median Quick Ratio among Manufacturing - Apparel & Accessories companies is 1.11, based on 1,061 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. Li Cheng Enterprise Co's current Quick Ratio of 0.64 is 42.3% 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 Li Cheng Enterprise Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Cheng Enterprise Co's current Quick Ratio is 0.64, which is 54% below median its own 10-year median of 1.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Cheng Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Li Cheng Enterprise Co (TPE:4426) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$10.89, compared to a current price of NT$8.26 — trading 24.2% below its estimated fair value. The current Quick Ratio is 0.64, which is 54% below median its 10-year median of 1.39 and 42.3% below the Manufacturing - Apparel & Accessories industry median of 1.11. Li Cheng Enterprise Co's overall GF Score™ is 55/100 with 7 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 Li Cheng Enterprise Co (TPE:4426), the current Quick Ratio is 0.64 as of Dec. 2025. 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 Li Cheng Enterprise Co (TPE:4426) Overvalued in 2026?
Based on GuruFocus' analysis, Li Cheng Enterprise Co stock appears to be undervalued.
The current stock price of NT$8.26 is trading 24.2% below its estimated GF Value™ of NT$10.89.
GuruFocus considers Li Cheng Enterprise Co to be Modestly Undervalued.
Key valuation signals for TPE:4426:
Quick Ratio: 0.64 (54% below median its 10-year median of 1.39)
GF Value™: NT$10.89 vs. price of NT$8.26 (24.2% below fair value)
Industry Position: 42.3% below the Manufacturing - Apparel & Accessories median (#798 of 1061)
No single metric tells the full story. See the TPE:4426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Li Cheng Enterprise Co Ltd is mainly engaged in the wholesale and retail of fabrics, garments, and accessories, as well as spinning, weaving, dyeing, and finishing activities. The company operates through a single reporting segment, the knitted fabric dyeing and finishing division, which is mainly engaged in the manufacture and sale of three-layer mesh fabrics. Its product lines include finished fabrics, raw yarn, and other products. Geographically, the company derives maximum revenue from Taiwan, followed by Vietnam, Mainland China, and other countries.
55GF Score
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