Tea Life Co (TSE:3172) Quick Ratio: 3.40 (As of Jan. 2026) — 32% Above Median

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TSE:3172 Tea Life Co Ltd TSE:3172
61 GF Score
Price 円1,163.00
GF Value 円779.00
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Tea Life Co Quick Ratio?

Tea Life Co TSE:3172 +0.09% 61 Quick Ratio is 3.40 as of Jan. 2026, which is 32% above its 10-year median of 2.57. GuruFocus rates TSE:3172 with a GF Score™ of 61/100 and a GF Value™ of 円779.00 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Tea Life Co ranks better than 84.4% on this metric.

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Tea Life Co's quick ratio for the quarter that ended in Jan. 2026 was 3.40.

Tea Life Co has a quick ratio of 3.40. It generally indicates good short-term financial strength.

The historical rank and industry rank for Tea Life Co's Quick Ratio or its related term are showing as below:

TSE:3172' s Quick Ratio Range Over the Past 10 Years
Min: 1.88   Med: 2.57   Max: 3.7
Current: 2.27

During the past 13 years, Tea Life Co's highest Quick Ratio was 3.70. The lowest was 1.88. And the median was 2.57.

TSE:3172's Quick Ratio is ranked better than
84.4% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 0.87 vs TSE:3172: 2.27

Tea Life Co  (TSE:3172) 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.


Tea Life Co Quick Ratio Related Terms


Tea Life Co Quick Ratio Historical Data

* Premium members only.

The historical data trend for Tea Life 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.

Tea Life Co Quick Ratio Chart

Tea Life Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.38 2.56 2.97 3.22 3.70

Tea Life Co Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.14 3.70 3.36 3.40 2.27

TSE:3172 vs AMZN, BABA, PDD: Quick Ratio Comparison

For the Internet Retail subindustry, Tea Life 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.


Tea Life Co Quick Ratio vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Tea Life Co's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Tea Life Co's Quick Ratio falls into.


TSE:3172
61GF Score
Tea Life Co Ltd TSE:3172
Quick Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tea Life 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.

Tea Life Co's Quick Ratio for the fiscal year that ended in Jul. 2025 is calculated as

Quick Ratio (A: Jul. 2025 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(4970-913)/1097
=3.70

Tea Life Co's Quick Ratio for the quarter that ended in Jan. 2026 is calculated as

Quick Ratio (Q: Jan. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(5007-996)/1178
=3.40

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 3.40 mean?
Tea Life Co (TSE:3172) has a Quick Ratio of 3.40 as of Jan. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Tea Life Co and its competitors. This is 32% above median its historical median of 2.57. Over the past decade, Tea Life Co's Quick Ratio has ranged from 1.88 to 3.70. According to the industry distribution chart, Tea Life Co ranks #176 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 15.6%.
Is Tea Life Co's Quick Ratio too high?
Tea Life Co's current Quick Ratio of 3.40 is 32% above median its 10-year median of 2.57. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 3.70. The Retail - Cyclical industry median Quick Ratio is 0.87. Tea Life Co's value of 3.40 is 290.8% above this industry median. Based on the distribution chart, Tea Life Co ranks #176 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Tea Life Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tea Life Co's Quick Ratio compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Tea Life Co ranks #176 out of 1128 companies for Quick Ratio. This places Tea Life Co in the top 16% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 0.87. Tea Life Co's value of 3.40 is 290.8% above this benchmark. Historically, Tea Life Co's own Quick Ratio has ranged from 1.88 to 3.70 over the past decade. While the company's 10-year median is 2.57 vs. the industry median of 0.87, Tea Life Co 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 Retail - Cyclical company?
The median Quick Ratio among Retail - Cyclical companies is 0.87, based on 1,128 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. Tea Life Co's current Quick Ratio of 3.40 is 290.8% 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 Tea Life Co and its competitors. For the Retail - Cyclical industry, the median Quick Ratio is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tea Life Co's current Quick Ratio is 3.40, which is 32% above median its own 10-year median of 2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tea Life Co stock overvalued right now?
Based on GuruFocus' analysis, Tea Life Co (TSE:3172) is currently considered Significantly Overvalued. The stock's GF Value™ is 円779.00, compared to a current price of 円1,163.00 — trading 49.3% above its estimated fair value. The current Quick Ratio is 3.40, which is 32% above median its 10-year median of 2.57 and 290.8% above the Retail - Cyclical industry median of 0.87. Tea Life Co's overall GF Score™ is 61/100 with 3 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 Tea Life Co (TSE:3172), the current Quick Ratio is 3.40 as of Jan. 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 Tea Life Co (TSE:3172) Overvalued in 2026?

Based on GuruFocus' analysis, Tea Life Co stock appears to be overvalued. The current stock price of 円1,163.00 is trading 49.3% above its estimated GF Value™ of 円779.00. GuruFocus considers Tea Life Co to be Significantly Overvalued.

Key valuation signals for TSE:3172:

  • Quick Ratio: 3.40 (32% above median its 10-year median of 2.57)
  • GF Value™: 円779.00 vs. price of 円1,163.00 (49.3% above fair value)
  • GF Score™: 61/100 with 3 warning signs
  • Industry Position: 290.8% above the Retail - Cyclical median (#176 of 1128)

No single metric tells the full story. See the TSE:3172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tea Life Co Business Description

Address 118 Ushio, Shizuoka Prefecture, Shimada, JPN, 428-8651
Tea Life Co Ltd is a Japan-based company involved in retail operations, wholesale distribution to mail-order companies and retail stores, as well as real estate leasing. The company operates through three reportable segments: the Wholesale Business, which supplies daily essentials and communication-related products to corporate clients; the Retail Business, which sells health foods, cosmetics, baby goods, and children's furniture directly to consumers through e-commerce channels; and the Property Management Business, which manages the leasing of company-owned properties and handles logistics-related real estate services. It generates the majority of its revenue from the Wholesale segment.
61GF Score

Get the complete analysis for TSE:3172

Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,163.00
Price
円779.00
GF Value