Zhengwei Group Holdings Co has a quick ratio of 3.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for Zhengwei Group Holdings Co's Quick Ratio or its related term are showing as below:
HKSE:02147'
s Quick Ratio Range Over the Past 10 Years
Min: 1.2 Med: 1.38 Max: 3.49
Current: 3.49
During the past 5 years, Zhengwei Group Holdings Co's highest Quick Ratio was 3.49. The lowest was 1.20. And the median was 1.38.
HKSE:02147's Quick Ratio is ranked better than 87.55% of 1919
companies
in the Consumer Packaged Goods industry
Industry Median: 1.05
vs HKSE:02147: 3.49
Zhengwei Group Holdings 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.
Competitive Comparison of Zhengwei Group Holdings Co's Quick Ratio
For the Packaged Foods subindustry, Zhengwei Group Holdings 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.
Zhengwei Group Holdings Co's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Zhengwei Group Holdings Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Zhengwei Group Holdings Co's Quick Ratio falls into.
Zhengwei Group Holdings 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.
* 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.
Zhengwei Group Holdings Co (HKSE:02147) 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.
Zhengwei Group Holdings Co Quick Ratio Related Terms
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Zhengwei Group Holdings Co (HKSE:02147) Business Description
Zhengwei Group Holdings Co Ltd produces dry food and snacks, and secondarily trades related products. It produces and sells a variety of snacks (including ready-to-eat vegetarian snacks and meat snacks), such as crispy bamboo shoots and roast necks; and packaged dry goods such as mushrooms, dried aquatic products, seaweed, grains, and seasonings in China. The majority of revenue is derived from the Snacks segment. It has two operating segments Manufacturing & trading, out of which the majority is from the manufacturing segment. Geographically, the majority is from PRC.
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