Quality Ratios allow an investor to understand the profitability of a company and its ability to defend its competitive operating advantages over time. Basic economics dictates that if one company identifies a profitable niche with low barriers to entry, it will attract competitors that take market share by whittling away at profit margins (i.e. undercutting on price) over time. High quality companies often have brands or proprietary technology that give them strong pricing power and a market-leading position. Stockopedia provides a range of Quality factors across profitability, margins, efficiency, liquidity and more.