Inve Blog · Topic
Profitability
10 articles on profitability.
EBITDA Margin Explained: What It Hides
What is EBITDA margin, and why does it flatter asset-heavy firms? See the depreciation, interest and tax it hides on real Indian numbers — and how to read it.
Asset Turnover Ratio: Formula, DuPont & ROE Link
Asset turnover ratio for Indian investors: the formula, its DuPont link to ROE, and how to tell a genuine efficiency gain from a hopeful asset-light story.
Gross Margin vs Operating Margin Explained
Gross margin vs operating margin, with formulas and a real example: two brands share a 59% gross margin but half the operating margin. See what the gap reveals.
Return on Assets (ROA) vs ROE: The Honest Profit Test
Return on assets (ROA) measures profit per rupee of assets, so debt can't flatter it like ROE. The formula, a good ROA by sector, and ROA vs ROE, with FY25 data.
Asset Turnover Ratio: How Hard Assets Work
Asset turnover shows how much sales a business earns from its asset base. See how retailers and manufacturers reach returns through opposite routes.
Pricing Power: How to Read a Company's Margin
A fat, steady operating margin means a company can raise prices and keep customers. Learn to read margins for pricing power, with real Indian examples.
Operating Margin vs Net Margin: Read the Real Business
Operating margin shows if the core business works. Net margin is what's left after interest, depreciation and one-offs. Why the gap matters, via Tata Motors.
Return on Capital: The One Quality Number
Two shops earn the same profit — one needs twice the capital. Return on capital tells a great business from a merely big one, using real Page vs NTPC data.
ROCE vs ROE: What the Gap Reveals
When ROE and ROCE diverge, it usually means one thing — leverage is doing the heavy lifting, not the business. Here's how to read the gap.
ROE in India: What's a Good Number and When to Distrust It
A 20% ROE sounds impressive — until you discover it's built on debt, not profit. Learn how DuPont analysis separates real earners from leveraged mirages.