Fundamental Analysis & Valuation
2 terms
Quality Investing
Fundamental Analysis & Valuation
qualitative
An approach that prioritises businesses with durable high returns on capital, strong balance sheets and consistent cash generation.
Test: sustained high return on capital employed, low leverage, cash conversion near or above reported profit, and a nameable competitive barrier
Quick Ratio
Fundamental Analysis & Valuation
ratio (x, times)
Current assets excluding inventory, divided by current liabilities — a stricter test of short-term solvency.
Quick Ratio = (Current Assets - Inventory) / Current Liabilities