It's good for everybody.

So it will benefit, because you are discounting some of the cash payments.

And when people talk about earnings of a company, this is what they're talking about.

They don't have to be.

Well, then you're going to spend this much to rent the money, right?

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

This is really important to pay attention to, because so many people say, oh, a company made this much.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They buy more of your service and they tell more of their friends, which leads to more profit.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

We know how much it takes to build our product.

Don't just accept the benefits of civilization add to it.

And now we're ready to figure out how much money did the operations of this business make?

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?

And let's say, assume if I inherited this million dollars, I didn't finance it.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

I'll just abbreviate that as Nl.

The assets are generating this.

Kill the goose that lays the golden eggs.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

Don't ask any questions that would portray us negatively.

I had to use that as part of the down payment on my house.

I had a tubal ligation.

So, let's see, you have to do 1.85.

Utilities are still rewarded when their customers waste energy.

These are the only people who really have, arguably the sophistication and the time and the monetary incentive to really look and scrutinize what management is doing.

Beneficiary

Minus 500,000.

Now what else goes into this equation?

With trade, there's mutual interdependency and mutual gain between parties.

We shared the benefit together.

He claimed his share of the profits.

Lookin' out for number one.

The taxes will be 153,000.

Money lenders are enjoying a profitable period.

War does have its benefits...

I say 50 percent here it's more like 60, 60 percent of the cost of your laptop is sales, marketing, distribution and profit.

I'm not a charity commissioner.

But again, fun is not enough.

Science comes first, but business comes a close fucking second.

And then, how much am I making from the business now?

But here you see it means very, very different things.

They're generating the operating profit, and that's a very important thing to realize in the future when we talk about return on assets.