Which financial metric provides insight into a firm's short-term liquidity without including inventory?

The quick ratio is a financial metric that evaluates a firm's short-term liquidity by measuring its ability to pay off its current liabilities without relying on inventory. This metric focuses on the most liquid assets, typically including cash, cash equivalents, and receivables, providing a more conservative view of a company's financial health compared to other liquidity measures.

By excluding inventory from the calculation, the quick ratio offers a clearer picture of liquidity in situations where inventory might be hard to convert to cash quickly, such as economic downturns or specific industry challenges. This is particularly relevant for companies that might have significant amounts of tied-up capital in inventory that does not easily translate into liquid assets. Therefore, it effectively assesses how well a company can meet its short-term obligations using its most readily available resources.

Other options such as the current ratio include inventory in their calculations, which can inflate the perception of liquidity under certain circumstances, while the debt ratio focuses on leverage rather than liquidity. The cash ratio, while also providing insights into liquidity, only considers cash and cash equivalents, which could be limiting in certain contexts. Thus, the quick ratio is the most appropriate metric for evaluating short-term liquidity without involving inventory.