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Stocks 305: Quantifying Competitive Advantages

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1.
There are three main types of profit margins used by companies. Which of the following is not one of them?
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Capital margin. This is not one of the margins used.
2.
Which of the following measures will not affect return on assets (ROA)?
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Asset/equity ratio. The asset/equity ratio will affect return on equity (ROE), not ROA.
3.
When using net profit margin to look at the relative efficiency of companies, it is best to use it _______.
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Within the same industry. It is best to use both net profit margin and turnover in isolation only if looking at very similar companies.
4.
What does a company's turnover ratio measure?
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How efficiently the company uses its assets to generate sales.
5.
Which of the following is an example of a non-interest-bearing current liability?
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Accounts payable. Accounts payable are the most common non-interest-bearing liability. Short-term debt bears interest, while accounts receivable is an asset.