Help
Course Catalog > Stocks > 300
Stocks 305: Quantifying Competitive Advantages

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name and email address below to receive certificate for this course. You will need this to confirm you have completed it.


Review your answers below to learn more.
1.
When using net profit margin to look at the relative efficiency of companies, it is best to use it _______.
Choose wisely. There is only one correct answer.
Within the same industry. It is best to use both net profit margin and turnover in isolation only if looking at very similar companies.
2.
Which expenses are not subtracted from sales when calculating NOPAT (net operating profit, after taxes)?
Choose wisely. There is only one correct answer.
Interest. Interest expenses are not subtracted from operating profit when calculating NOPAT. Taxes (the "AT" in NOPAT) obviously are, while COGS are subtracted from sales to get to operating profit.
3.
What does a company's turnover ratio measure?
Choose wisely. There is only one correct answer.
How efficiently the company uses its assets to generate sales.
4.
If a company's ROIC (return on invested capital) exceeds _______ for a several years, it most likely has an economic moat.
Choose wisely. There is only one correct answer.
15%. Provided that it occurs for a number of years, this figure suggests a moat.
5.
Which of the following is an example of a non-interest-bearing current liability?
Choose wisely. There is only one correct answer.
Accounts payable. Accounts payable are the most common non-interest-bearing liability. Short-term debt bears interest, while accounts receivable is an asset.