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. Touyun Biotech Group's current ratio for the quarter that ended in Jun. 2023 was 0.54.
Touyun Biotech Group has a current ratio of 0.54. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Touyun Biotech Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Touyun Biotech Group's Current Ratio or its related term are showing as below:
HKSE:01332'
s Current Ratio Range Over the Past 10 Years
Min: 0.43 Med: 1.95 Max: 11.2
Current: 0.43
During the past 13 years, Touyun Biotech Group's highest Current Ratio was 11.20. The lowest was 0.43. And the median was 1.95.
HKSE:01332's Current Ratio is ranked worse than 95.92% of 392
companies
in the Packaging & Containers industry
Industry Median: 1.775
vs HKSE:01332: 0.43
Touyun Biotech Group Current Ratio Historical Data
The historical data trend for Touyun Biotech Group's Current 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.
Competitive Comparison of Touyun Biotech Group's Current Ratio
For the Packaging & Containers subindustry, Touyun Biotech 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.
Touyun Biotech Group's Current Ratio Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Touyun Biotech Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Touyun Biotech Group's Current Ratio falls into.
Touyun Biotech 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.
Touyun Biotech Group's Current Ratio for the fiscal year that ended in Dec. 2022 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.
Touyun Biotech Group (HKSE:01332) 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.
Touyun Biotech Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Touyun Biotech Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Touyun Biotech Group (HKSE:01332) Business Description
Touyun Biotech Group Ltd, formerly China Touyun Tech Group Ltd, an investment holding company, designs, develops, manufactures, and sells packaging products and point-of-sales display units. It operates with four business segments, Packaging Products, Treasury Investment, QR code business, and Chlamydomonas reinhardtii product business. Through the Packaging Products segment, it offers watch boxes, jewelry boxes, eyewear cases, bags and pouches, and display units whereas the Treasury segment engages in the trading of securities and money lending activities. It derives a majority of its revenue from the Packaging products. The business activity of the group is operated in Hong Kong, Mainland China, North and South America, and other countries.
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