Quick Ratio
The quick ratio is cash, marketable securities, and receivables over current liabilities — current ratio without inventory.
Definition
Quick Ratio refers to current ratio without inventory. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Equity risk premia compress or expand with earnings paths and factor regimes. When current ratio without inventory shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what quick ratio is saying. If current ratio without inventory moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Separate index beta from residual; know the sector and factor loadings of the claim. Prefer a short written null hypothesis for Quick Ratio: what would falsify the current reading in the next window?