The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Grand Baoxin Auto Group's current ratio for the quarter that ended in Dec. 2023 was 1.32.
Grand Baoxin Auto Group has a current ratio of 1.32. It generally indicates good short-term financial strength.
The historical rank and industry rank for Grand Baoxin Auto Group's Current Ratio or its related term are showing as below:
HKSE:01293'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.33 Max: 1.62
Current: 1.32
During the past 13 years, Grand Baoxin Auto Group's highest Current Ratio was 1.62. The lowest was 1.00. And the median was 1.33.
HKSE:01293's Current Ratio is ranked worse than 59.47% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 1.515
vs HKSE:01293: 1.32
Grand Baoxin Auto Group Current 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.
Competitive Comparison of Grand Baoxin Auto Group's Current Ratio
For the Auto & Truck Dealerships subindustry, Grand Baoxin Auto Group's Current Ratio, along with its competitors' market caps and Current 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.
Grand Baoxin Auto Group's Current Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Grand Baoxin Auto Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Grand Baoxin Auto Group's Current Ratio falls into.
Grand Baoxin Auto Group Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Grand Baoxin Auto Group's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Grand Baoxin Auto Group (HKSE:01293) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Grand Baoxin Auto Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Grand Baoxin Auto Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Grand Baoxin Auto Group (HKSE:01293) Business Description
Grand Baoxin Auto Group Ltd is an automobile sales and service group which focuses on mid-and-high end brands as well as luxury and ultra-luxury brands. It has only one reportable segment being the Sale of Motor Vehicles and the Provision of Related Services. The company offers a full range of integrated services, providing a range of services including new car sales, after-sales maintenance, auto beauty modification, used car sales, auto insurance business, auto parts sales, and other automotive-related product sales. The company's car brand portfolio comprises of Audi, Jaguar Land Rover, Volvo, Cadillac, Chrysler, Alfa Romeo, Porsche, Rolls Royce, and others. The company operates in Mainland China.
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