What are the business models of traditional industrial economy and Internet companies on the balance sheet?

1. asset composition: the traditional industrial economy mainly relies on physical assets, such as production equipment, factories, land, etc. These assets usually enter the company's balance sheet. On the other hand, Internet companies rely more on intangible assets, such as intellectual property, brand value and software technology, which are usually not directly reflected on the balance sheet.

2. Long-term investment: Traditional industrial economy often needs a lot of long-term investment, such as purchasing equipment and building factories, which are usually spread over many years. Internet companies, on the other hand, need less long-term investment expenditure, because they rely more on software and network technology, and often do not need physical assets such as large-scale production equipment or factories.

3. Debt composition: Traditional industrial economies usually have a high debt ratio because they need to borrow money to buy physical assets such as equipment and factories. Internet companies usually have a low debt ratio, because relying on intangible assets such as intellectual property rights, they do not need to borrow as much as traditional enterprises.