https://equationseries.com/blog/How companies create, capture and destroy value.https://equationseries.com/blog/how-ai-companies-make-money/https://equationseries.com/blog/how-ai-companies-make-money/Thu, 12 Nov 2026 12:00:00 GMTHow AI companies make money, layer by layer: chips, clouds, model labs, open models and apps, with the margins each earns and who pays for the gap.https://equationseries.com/blog/how-financial-companies-make-money/https://equationseries.com/blog/how-financial-companies-make-money/Thu, 12 Nov 2026 12:00:00 GMTBanks, card networks, insurers, asset managers and fintechs earn money in six ways. Here is how each engine works, with real US numbers and the failures.https://equationseries.com/blog/how-manufacturing-companies-make-money/https://equationseries.com/blog/how-manufacturing-companies-make-money/Thu, 12 Nov 2026 12:00:00 GMTHow manufacturers really earn a profit: the cost stack, fixed cost and operating leverage, the aftermarket, and the four factors that decide who wins.https://equationseries.com/blog/how-private-equity-makes-money/https://equationseries.com/blog/how-private-equity-makes-money/Thu, 12 Nov 2026 12:00:00 GMTHow private equity firms earn fees and carried interest, where buyout returns really come from, and the four factors that decide whether a deal works.https://equationseries.com/blog/energy-industry-business-model/https://equationseries.com/blog/energy-industry-business-model/Thu, 12 Nov 2026 12:00:00 GMTHow oil, gas, utilities, power markets and clean energy actually earn money, where the margins settle, and why so many energy companies still fail.https://equationseries.com/blog/how-the-healthcare-industry-makes-money/https://equationseries.com/blog/how-the-healthcare-industry-makes-money/Thu, 12 Nov 2026 12:00:00 GMTWho pays for US healthcare, how hospitals, insurers, PBMs, drugmakers and doctors get paid, and where the profit settles in a $5.3 trillion system.https://equationseries.com/blog/how-trading-firms-make-money/https://equationseries.com/blog/how-trading-firms-make-money/Thu, 12 Nov 2026 12:00:00 GMTTrading firms make money from spreads, risk premia, order flow, fees and speed, mostly at the expense of other traders. Here is who wins, who pays and why.https://equationseries.com/blog/how-venture-capital-works/https://equationseries.com/blog/how-venture-capital-works/Thu, 12 Nov 2026 12:00:00 GMTHow venture capital works, end to end: where VC money comes from, how funds are paid, why the power law rules, how deals are priced and how value becomes cash.https://equationseries.com/blog/edtech-business-model/https://equationseries.com/blog/edtech-business-model/Thu, 12 Nov 2026 12:00:00 GMTHow edtech companies make money: who pays, pricing, unit economics, margins and sales routes, with Duolingo, Chegg, 2U and PowerSchool as worked examples.https://equationseries.com/blog/ai-inference-cost-explained/https://equationseries.com/blog/ai-inference-cost-explained/Thu, 12 Nov 2026 12:00:00 GMTWhat AI inference costs, why the price per token falls about 10x a year, why reasoning and agents make bills rise anyway, and what it does to gross margins.https://equationseries.com/blog/ai-wrapper-startup-moat/https://equationseries.com/blog/ai-wrapper-startup-moat/Thu, 12 Nov 2026 12:00:00 GMTHow to evaluate whether an AI wrapper startup has a moat: the thin vs thick test, platform risk from model suppliers, and lessons from Jasper, Windsurf and Cursor.https://equationseries.com/blog/b2c-vs-b2b-edtech/https://equationseries.com/blog/b2c-vs-b2b-edtech/Thu, 12 Nov 2026 12:00:00 GMTB2C edtech sells to learners and parents; B2B sells to schools, universities and employers. Compare acquisition, retention, margins, risks and exits with real cases.https://equationseries.com/blog/coreweave-business-model-explained/https://equationseries.com/blog/coreweave-business-model-explained/Thu, 12 Nov 2026 12:00:00 GMTHow CoreWeave makes money renting Nvidia GPUs on multi-year contracts, why 60% EBITDA margins still produce losses, and the three clocks behind neocloud risk.https://equationseries.com/blog/how-to-evaluate-fintech-unit-economics/https://equationseries.com/blog/how-to-evaluate-fintech-unit-economics/Thu, 12 Nov 2026 12:00:00 GMTHow to judge a fintech's unit economics: net take rate, contribution payback, CAC, churn, funding and concentration, with Chime, Affirm and Visa as examples.https://equationseries.com/blog/how-an-lbo-works-example/https://equationseries.com/blog/how-an-lbo-works-example/Thu, 12 Nov 2026 12:00:00 GMTA worked leveraged buyout example with real arithmetic: sources and uses, the debt schedule, free cash flow, exit value, MOIC and IRR, and what moves the result.https://equationseries.com/blog/how-freight-brokers-make-money/https://equationseries.com/blog/how-freight-brokers-make-money/Thu, 12 Nov 2026 12:00:00 GMTFreight brokers earn the spread between what shippers pay and what carriers are paid. Here is how that margin works, why it moves with the cycle, and what it costs.https://equationseries.com/blog/how-insurance-companies-make-money/https://equationseries.com/blog/how-insurance-companies-make-money/Thu, 12 Nov 2026 12:00:00 GMTInsurers earn from underwriting and from investing float, the premiums they hold before paying claims. Here is how the combined ratio and float work.https://equationseries.com/blog/how-medicare-advantage-plans-make-money/https://equationseries.com/blog/how-medicare-advantage-plans-make-money/Thu, 12 Nov 2026 12:00:00 GMTMedicare Advantage plans earn the gap between a risk-adjusted federal payment and members' care costs. Here is how benchmarks, bids, stars and coding work.https://equationseries.com/blog/how-pbms-make-money/https://equationseries.com/blog/how-pbms-make-money/Thu, 12 Nov 2026 12:00:00 GMTPharmacy benefit managers earn from retained rebates, spread pricing, owned pharmacies and fees. Here is how each works, with one prescription traced.https://equationseries.com/blog/how-power-purchase-agreements-work/https://equationseries.com/blog/how-power-purchase-agreements-work/Thu, 12 Nov 2026 12:00:00 GMTA power purchase agreement fixes the price of a plant's output for 10 to 25 years so it can be financed. How physical and virtual PPAs work, and who carries which risk.https://equationseries.com/blog/how-duolingo-makes-money/https://equationseries.com/blog/how-duolingo-makes-money/Thu, 12 Nov 2026 12:00:00 GMTDuolingo earned $1.04 billion in 2025 from a free app. How its subscriptions, ads and English test work, why near-zero acquisition cost matters, and what AI changes.https://equationseries.com/blog/how-visa-makes-money/https://equationseries.com/blog/how-visa-makes-money/Thu, 12 Nov 2026 12:00:00 GMTVisa lends nothing and issues no cards, yet kept about $23.5 billion of profit in fiscal 2026. Here is how its take rate, fees and interchange work.https://equationseries.com/blog/how-payment-for-order-flow-works/https://equationseries.com/blog/how-payment-for-order-flow-works/Thu, 12 Nov 2026 12:00:00 GMTPayment for order flow is how commission-free brokers like Robinhood get paid: wholesalers such as Citadel Securities pay to fill your orders. Here is how it works.https://equationseries.com/blog/how-private-equity-values-companies/https://equationseries.com/blog/how-private-equity-values-companies/Thu, 12 Nov 2026 12:00:00 GMTHow private equity firms value companies: comps, precedents, DCF and the LBO model, plus quality of earnings and the EV-to-equity bridge, with worked numbers.https://equationseries.com/blog/how-to-analyze-a-bank/https://equationseries.com/blog/how-to-analyze-a-bank/Thu, 12 Nov 2026 12:00:00 GMTA practical way to read a US bank's 10-K and call reports: deposits, unrealized losses, NIM, credit, capital and governance, with the lessons from 2023.https://equationseries.com/blog/how-to-analyze-a-health-insurance-company/https://equationseries.com/blog/how-to-analyze-a-health-insurance-company/Thu, 12 Nov 2026 12:00:00 GMTA practical guide to reading a health insurer: funding mix, medical loss ratio, cost trend, reserves, risk adjustment, segment profits and the policy calendar.https://equationseries.com/blog/how-to-analyze-hospital-financial-statements/https://equationseries.com/blog/how-to-analyze-hospital-financial-statements/Thu, 12 Nov 2026 12:00:00 GMTHow to read a hospital's finances: net vs gross revenue, payer mix, operating vs total margin, days cash on hand, 340B, leases and the red flags to watch.https://equationseries.com/blog/how-to-calculate-landed-cost/https://equationseries.com/blog/how-to-calculate-landed-cost/Thu, 12 Nov 2026 12:00:00 GMTLanded cost is the full cost of getting a product to your warehouse. Here is how to calculate it, step by step, with freight, duties, fees and carrying cost.https://equationseries.com/blog/how-to-calculate-oee/https://equationseries.com/blog/how-to-calculate-oee/Thu, 12 Nov 2026 12:00:00 GMTHow to calculate overall equipment effectiveness step by step, why the same line can report 65% or 86%, and how to price an hour of downtime on your own line.https://equationseries.com/blog/how-to-evaluate-edtech-efficacy-claims/https://equationseries.com/blog/how-to-evaluate-edtech-efficacy-claims/Thu, 12 Nov 2026 12:00:00 GMTA step-by-step guide to judging whether an edtech product works: the four ESSA evidence tiers, effect sizes, study design, sample size and the usage-study trap.https://equationseries.com/blog/how-to-price-an-ai-product/https://equationseries.com/blog/how-to-price-an-ai-product/Thu, 12 Nov 2026 12:00:00 GMTA practical guide to AI pricing: how to choose between seats, usage, credits and outcome pricing, test margins at heavy usage, and learn from Cursor and Sierra.https://equationseries.com/blog/how-to-raise-a-seed-round/https://equationseries.com/blog/how-to-raise-a-seed-round/Thu, 12 Nov 2026 12:00:00 GMTHow to raise a seed round in 2026: what seed money must prove, typical round sizes and valuations, SAFEs or priced rounds, finding a lead and protecting ownership.https://equationseries.com/blog/how-to-read-utility-rate-case/https://equationseries.com/blog/how-to-read-utility-rate-case/Thu, 12 Nov 2026 12:00:00 GMTA step-by-step guide to reading a US utility rate case: the revenue requirement, rate base, allowed ROE, equity ratio, riders, and what it all means for bills.https://equationseries.com/blog/how-to-read-a-vc-term-sheet/https://equationseries.com/blog/how-to-read-a-vc-term-sheet/Thu, 12 Nov 2026 12:00:00 GMTHow to read a venture capital term sheet: valuation and option pool, liquidation preferences, anti-dilution, board seats and vetoes, with 2026 market data.https://equationseries.com/blog/how-to-read-container-shipping-rates/https://equationseries.com/blog/how-to-read-container-shipping-rates/Thu, 12 Nov 2026 12:00:00 GMTA practical guide to container shipping rates: TEU vs FEU, Drewry and SCFI indices, spot vs contract, surcharges, and what the 2021 boom and 2026 spike teach.https://equationseries.com/blog/how-to-sell-edtech-to-school-districts/https://equationseries.com/blog/how-to-sell-edtech-to-school-districts/Thu, 12 Nov 2026 12:00:00 GMTA practical guide to K-12 edtech sales: who buys inside a district, the budget calendar, Title I funding, RFPs and co-ops, and how to run pilots that convert.https://equationseries.com/blog/how-to-spot-backtest-overfitting/https://equationseries.com/blog/how-to-spot-backtest-overfitting/Thu, 12 Nov 2026 12:00:00 GMTMost backtests look better than the live results that follow. Here is how to spot overfitting, with the statistics, the common biases and a 20-question checklist.https://equationseries.com/blog/how-vc-funds-make-money/https://equationseries.com/blog/how-vc-funds-make-money/Thu, 12 Nov 2026 12:00:00 GMTHow venture capital funds make money: the 2% management fee, 20% carried interest, the waterfall, recycling and why 3x gross becomes about 2.45x for LPs.https://equationseries.com/blog/ltl-vs-truckload/https://equationseries.com/blog/ltl-vs-truckload/Thu, 12 Nov 2026 12:00:00 GMTLTL and truckload share the same highways but are different businesses. Compare how each is priced, what drives cost, who the carriers are and when to use which.https://equationseries.com/blog/neobank-vs-traditional-bank/https://equationseries.com/blog/neobank-vs-traditional-bank/Thu, 12 Nov 2026 12:00:00 GMTNeobanks like Chime earn mostly from debit interchange through partner banks; traditional banks earn from deposit spread and loans. Here is how they compare.https://equationseries.com/blog/open-vs-closed-ai-models/https://equationseries.com/blog/open-vs-closed-ai-models/Thu, 12 Nov 2026 12:00:00 GMTOpen-weight vs closed AI models compared: who makes money from each, what licences allow, when self-hosting pays, and why labs open when behind and close when ahead.https://equationseries.com/blog/operating-leverage-in-manufacturing/https://equationseries.com/blog/operating-leverage-in-manufacturing/Thu, 12 Nov 2026 12:00:00 GMTOperating leverage explains why a 10% drop in factory volume can wipe out 40% of profit. Formula, worked examples and real cases from Boeing, Intel and Nucor.https://equationseries.com/blog/pjm-capacity-auction-explained/https://equationseries.com/blog/pjm-capacity-auction-explained/Thu, 12 Nov 2026 12:00:00 GMTPJM's capacity price rose from about $29 to about $329 per MW-day in two auctions. How the auction works, why data centers moved it, and what it does to bills.https://equationseries.com/blog/reshoring-total-landed-cost/https://equationseries.com/blog/reshoring-total-landed-cost/Thu, 12 Nov 2026 12:00:00 GMTHow to compare the total landed cost of making a product in China, Mexico or the US under 2026 tariffs, and why the labor gap, not the tariff, decides reshoring.https://equationseries.com/blog/safe-vs-convertible-note/https://equationseries.com/blog/safe-vs-convertible-note/Thu, 12 Nov 2026 12:00:00 GMTSAFE vs convertible note: how each converts, caps and discounts, interest and maturity, the dilution traps, and when founders and investors prefer each one.https://equationseries.com/blog/texas-power-crisis-2021/https://equationseries.com/blog/texas-power-crisis-2021/Thu, 12 Nov 2026 12:00:00 GMTIn February 2021 Texas's grid nearly collapsed and power sat at $9,000/MWh for days. Why Brazos and Griddy went bankrupt while Vistra and NRG survived.https://equationseries.com/blog/ai-tutoring-business-model/https://equationseries.com/blog/ai-tutoring-business-model/Thu, 12 Nov 2026 12:00:00 GMTCan AI tutoring make money? Inference costs per student, what schools pay, what the 2024–26 evidence shows, and what makes an AI education business defensible.https://equationseries.com/blog/bullwhip-effect-explained/https://equationseries.com/blog/bullwhip-effect-explained/Thu, 12 Nov 2026 12:00:00 GMTThe bullwhip effect turns small changes in consumer demand into huge swings in factory orders. Here are its five causes, real examples and what reduces it.https://equationseries.com/blog/power-law-in-venture-capital/https://equationseries.com/blog/power-law-in-venture-capital/Thu, 12 Nov 2026 12:00:00 GMTThe power law in venture capital means a few deals make nearly all the returns. Here are the data, the fund math and what it means for investors and founders.https://equationseries.com/blog/rjr-nabisco-leveraged-buyout/https://equationseries.com/blog/rjr-nabisco-leveraged-buyout/Thu, 12 Nov 2026 12:00:00 GMTKKR won RJR Nabisco for $109 a share in 1988, the biggest LBO of its era. Investors earned roughly break-even. Here is why the deal disappointed.