CurrentRatio
Current Ratio — Ou and Penman 1989
Leverage
Quick facts
| Factor ID | CurrentRatio |
| Display name | Current Ratio |
| Family | Predictor |
| Category | Leverage |
| Direction | lower_expected_return |
| Status | supported |
| Paper | Ou and Penman 1989 |
| Source tables | fina_indicator |
| Required fields | current_ratio |
| PIT required | yes |
| Coverage | 2010-04-27 – 2026-05-15 · 666,087 rows · 97.2% of panel |
Formula
current_ratio
Current assets divided by current liabilities from fina_indicator.
China adaptation
Uses Tushare fina_indicator current_ratio directly.
Direction-adjusted cumulative return
Return metrics
| Metric | Value |
|---|---|
| Months in sample | 193 |
| Monthly mean | -0.2814% |
| Monthly std | 3.9943% |
| Annualized Sharpe | -0.24 |
| t-stat (simple) | -0.98 |
| Hit rate (months > 0) | 48.7% |
| Last 12M compounded | -6.26% |
| Cumulative wealth (start = 1) | 0.497 |
Recent 12 months
| Month | L/S return | Cumulative | Names |
|---|---|---|---|
| 2025-05 | -2.15% | 0.519 | 5027 |
| 2025-06 | -1.18% | 0.513 | 5037 |
| 2025-07 | -2.49% | 0.500 | 5038 |
| 2025-08 | +0.23% | 0.501 | 5074 |
| 2025-09 | +2.35% | 0.513 | 5099 |
| 2025-10 | +1.78% | 0.522 | 5061 |
| 2025-11 | -3.31% | 0.505 | 5065 |
| 2025-12 | -1.15% | 0.499 | 5079 |
| 2026-01 | +1.97% | 0.509 | 5078 |
| 2026-02 | +3.30% | 0.525 | 5083 |
| 2026-03 | -3.19% | 0.509 | 5108 |
| 2026-04 | -2.30% | 0.497 | 5085 |
Known data issues
None recorded.
Notes
Direction is ambiguous in the literature; set to negative following the overinvestment interpretation.
See also: Leverage family, Factor library, Factor returns.