Quick Ratio

The quick ratio measures a company’s ability to pay short-term obligations using its most liquid assets (cash, marketable securities, and receivables), excluding inventory.

A ratio of 0.14x means Assurant has only $0.14 in liquid assets for every $1 of current liabilities, indicating a very low liquidity buffer. This is well below the Financial Services sector median of 0.37x, placing the company in the 10th percentile among sector peers. The metric has been decreasing over the last eight quarters: the year-over-year change is -74.5%, though the quarter-over-quarter change is +0.0% (flat at 0.14x for the past four quarters after dropping from 0.55x). The combination of a persistently low level and a downward trend points to elevated short-term liquidity risk, which could heighten vulnerability to cash flow shocks. This weak liquidity profile contradicts the overall NEUTRAL verdict by adding a downside concern, but the verdict likely balances other strengths elsewhere.

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