I think it's because you are looking at companies that are in rapid growth mode. In those cases, you would likely have negative Net Income because you are inves

I think it's because you are looking at companies that are in rapid growth mode. In those cases, you would likely have negative Net Income because you are investing all revenue into growing the business. More mature tech businesses that are IP-based, have high gross margins and profits. This follows into other industries with high IP-based costs rather than traditional asset-based costs. We see high margins from investment firms, consultants, banks, and SaaS companies. Basically, companies who rely on their employees knowledge to deliver products. We tend to see lower margins from auto manufacturers, construction, textile, and chemicals. The type of companies that require large asset investments and maintenance on machines and factories. This is why Apple has pushed so hard into their "Services" offerings. The margins are incredibly high (and more predictable) compared to building and selling physical phones and computers. I can build the service once and sell it to 100 million people. For phones, I have to build each one before selling it.