eHi Car Fundamental Relationships

EHIC -- USA Stock  

USD 11.62  0.24  2.11%

The Drivers Module shows relationships between eHi Car's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of eHi Car Services Limited over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

eHi Car Services Working Capital vs. Current Ratio Fundamental Analysis

eHi Car Services Limited is rated below average in current ratio category among related companies. It is rated below average in working capital category among related companies reporting about  1,716,965,839  of Working Capital per Current Ratio.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
eHi Car 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
=
0.90 times
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).
Working Capital is measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is important indicator of the firm ability to continue its normal operations without additional debt obligations. .
eHi Car 
Working Capital 
 = 
Current Assets 
Current Liabilities 
=
1.55 B
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

eHi Car Services Working Capital Comparison

  Working Capital 
      eHi Car Comparables 
eHi Car is rated below average in working capital category among related companies.
  Revenue 
      eHi Car Comparables 
eHi Car is rated below average in revenue category among related companies.
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