Introduction to Quantifying Competitive Advantages
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Get a sense of a company's competitive advantages by looking at its financial statements. This math-heavy tutorial will show you how.
What you will learn
- Free Cash Flow, Profit Margins, and Turnover
- Return on Equity and Assets, and the DuPont Equation
- Return on Invested Capital
What do you know?
Introduction to Quantifying Competitive Advantages
Deciding whether or not a company has an economic moat is certainly more art than science. It largely involves looking at qualitative factors that influence competitive positioning. But those qualitative factors can, in fact, be measured by analyzing select numbers found in the financial statements. It is most certainly prudent to make sure a company you are interested in does indeed have a moat before buying. In this lesson, we'll tell you what to look for.