GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » China Education Group Holdings Ltd (HKSE:00839) » Definitions » Quick Ratio

China Education Group Holdings (HKSE:00839) Quick Ratio : 0.85 (As of Aug. 2023)


View and export this data going back to 2017. Start your Free Trial

What is China Education Group Holdings Quick Ratio?

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. China Education Group Holdings's quick ratio for the quarter that ended in Aug. 2023 was 0.85.

China Education Group Holdings has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for China Education Group Holdings's Quick Ratio or its related term are showing as below:

HKSE:00839' s Quick Ratio Range Over the Past 10 Years
Min: 0.69   Med: 0.89   Max: 3.56
Current: 0.85

During the past 9 years, China Education Group Holdings's highest Quick Ratio was 3.56. The lowest was 0.69. And the median was 0.89.

HKSE:00839's Quick Ratio is ranked worse than
68.28% of 268 companies
in the Education industry
Industry Median: 1.27 vs HKSE:00839: 0.85

China Education Group Holdings Quick Ratio Historical Data

The historical data trend for China Education Group Holdings'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.

* Premium members only.

China Education Group Holdings Quick Ratio Chart

China Education Group Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Aug19 Aug20 Aug21 Aug22 Aug23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only 1.32 1.49 0.69 0.81 0.85

China Education Group Holdings Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 0.77 0.81 0.84 0.85 -

Competitive Comparison of China Education Group Holdings's Quick Ratio

For the Education & Training Services subindustry, China Education Group Holdings'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.


China Education Group Holdings's Quick Ratio Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, China Education Group Holdings's Quick Ratio distribution charts can be found below:

* The bar in red indicates where China Education Group Holdings's Quick Ratio falls into.



China Education Group Holdings 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.

China Education Group Holdings's Quick Ratio for the fiscal year that ended in Aug. 2023 is calculated as

Quick Ratio (A: Aug. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7528.735-0)/8888.075
=0.85

China Education Group Holdings's Quick Ratio for the quarter that ended in Aug. 2023 is calculated as

Quick Ratio (Q: Aug. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7528.735-0)/8888.075
=0.85

* 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.


China Education Group Holdings  (HKSE:00839) 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.


China Education Group Holdings Quick Ratio Related Terms

Thank you for viewing the detailed overview of China Education Group Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


China Education Group Holdings (HKSE:00839) Business Description

Traded in Other Exchanges
Address
18 Harbour Road, Suite 6703–04, 67th Floor, Central Plaza, Wanchai, Hong Kong, HKG
China Education Group Holdings Ltd is a leading ultra-large-scale private education group in China with 30 years of experience in higher education operations. CEG's schools offer both higher vocational education and secondary vocational education. The school network spans domestic China and overseas. CEG also offers continuing education to full-time working adults. The group's total enrolled full-time students in China expanded more than 3 times over the last six years to about 248,000 as of August 2023. The rapid growth is primarily attributable to school acquisitions. CEG currently operates 14 schools, up from only 3 in 2017.

China Education Group Holdings (HKSE:00839) Headlines

No Headlines