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Is It Well-Run? · Advanced · Pro filter

Gross profit / assets: what it means and how to read it

Gross profit (sales minus the direct cost of what was sold) ÷ total assets.

What is Gross profit / assets?

Gross profit (sales minus the direct cost of what was sold) ÷ total assets.

A worked example

Sales of ₹1,000 Cr less ₹600 Cr of direct costs is ₹400 Cr of gross profit. On assets of ₹1,600 Cr that is 25%.

Why does Gross profit / assets matter?

Research by Robert Novy-Marx found this simple measure of profitability useful for spotting quality companies.

How do you read Gross profit / assets?

Higher is better. Compare within a sector.

Higher is usually better.

What is a typical Gross profit / assets in India today?

The median across the 2971 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.

By company size

Median
Large Cap · 57 companies37.8%
Mid Cap · 98 companies37.9%
Small Cap · 2816 companies30.3%

By industry

Median, largest industries first
Pharmaceuticals · 16735.0%
Refineries & Marketing · 843.7%
Heavy Electrical Equipment · 3934.0%
Auto Components & Equipments · 10345.5%
Power Generation · 1911.2%
Cement & Cement Products · 3249.6%
Aerospace & Defense · 2828.7%
2/3 Wheelers · 926.6%
Iron & Steel · 1237.8%
Civil Construction · 8932.2%
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.

Screen 6622 companies on Gross profit / assets and every other filter.