Same Industry, Different Economics: How to Compare Two Companies
Two companies can sell similar things and still earn money in very different ways. A practical comparison of margins, cash, capital and the price an investor pays.
IDEAS & PERSPECTIVES
Beyond the numbers.
Into the ideas.
Articles
Essays and explainers on markets, businesses, investing,
economics and financial technology.
ALL ARTICLES 11NEWEST FIRST
Does Recurring Revenue Make a Business Predictable?
Subscriptions provide a useful starting point for a forecast. Retention, pricing and renewal behaviour tell us how much confidence that starting point deserves.
A New Store Is an Investment. When Does It Pay Back?
A shop can cover its bills long before it recovers the cash spent to open it. Follow inventory, the sales ramp and store ownership to understand retail expansion.
Why a Bank’s Deposits Matter More Than They Look
A deposit is more than a balance-sheet number. HDFC Bank’s latest update and annual report show why funding mix, customer relationships and repricing shape a bank’s earnings.
When Gold Prices Rise, Is a Jeweller Really Growing?
Higher gold prices can lift a jeweller’s revenue without matching growth in demand. Titan’s disclosures help separate sales, buyer activity and grams sold.
Nike’s Margin Improved. Why Did Gross Profit Fall?
Nike’s October results show why a higher gross margin can leave a smaller profit pool. Follow the sales, the costs and the money left to run the business.
What Does a $150 Billion Buyback Actually Buy?
NVIDIA’s new repurchase authorisation is a useful starting point. The price paid, the shares left and the cash spent determine what a buyback does for continuing owners.
When AI Capex Falls, Has the Spending Really Fallen?
Microsoft’s latest spending guidance shows why a smaller capital-expenditure headline can leave the underlying investment plan intact. Follow the leases, then follow the cash.
When a Digital Payment Looks Free, Who Keeps It Running?
A UPI payment can cost the customer nothing and still take a network of banks, apps and infrastructure to complete. Here is how the bill is shared.
A Good Business, Two Different Returns
Strong business results do not settle what investors will earn. Microsoft’s fiscal 2026 filing and a simple price experiment show why the starting valuation matters.
Revenue Grew. Cash Didn’t Follow.
Tesla’s 2023 filing shows how rising sales can coexist with weaker operating cash flow—and why the explanation matters more than the headline.