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Do small-cap stocks usually outperform large-cap stocks? It's important for a company to have a high...

Do small-cap stocks usually outperform large-cap stocks? It's important for a company to have a high quick ratio. Is liquidity particularly important for retail firms?
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Yes small stocks usually outperform large cap stocks because they are in growing stage whereas large caps are usually in maturity stage.The scope of growth is higher in small stock along with high risk.
Yes quick ratio and liquidity is important for retail industry because higher liquidity ensures it can payoff its suppliers. In retail industry the cash conversion cycle should be low so that it can pay off its suppliers easily . Quick Ratio helps in analysing the current assets minus the current liabilities part . This enables to understand its capability to pay off its short term liabilities.

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