So EBlT, I kind of view that it goes backwards.

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

Yep, that's right.

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

Company A made 1 per share. 1 of EPS.

So then you're having, you have your net income, your net income during the period.

Net profit for the period is estimated at 5 billion yen, largely unchanged from the previous one.

I'll just abbreviate that as Nl.

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

The taxes will be 153,000.

Before I go into price to earnings and all that, I want to connect the dots between the income statement and the balance sheet.

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.

So that's what I'm paying for, arguably.

This is 350,000 of net income.

This guy makes what is this?

That's day 0.

Have you seen the latest figures, children?

Give me regular reports, please.

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?

But at this point, you should have a good understanding of at least a basic income statement of a company that sells widgets.

Before Interest and Taxes.

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

They're literally saying, Google made 3 billion in net income.

Because during conflict economic policy typically deteriorates.

I expect a progress report by sunrise.

Net profit comes to 10 million dollars every year.

This guy makes 21,000.

Now Coke has a very clear bottom line they report to a set of shareholders, they have to turn a profit.

So most cash flow statements, they'll start so I'm going to do a cash flow statement right over here

We're going to take a write down.

Money lenders are enjoying a profitable period.

This is unreported income gained from an illegal venture.

If we're doing a financial model and if we say our revenue has a normal distribution around some expected value, what is the distribution of our net income?

In return on equity, the numerator is the net income that we got, so it's 350,000.

Or product updates, here's a way to keep me loyal is instead of just this one time purchase,

We know how much it takes to build our product.

Let's hope so. We've gotten reports of two more craters.

He's not my boyfriend, it's just platonic love with benefits!

So while we want to make economic profit for ourselves and our customers, we are willing to do it with a long term view, and we like to have a wider definition of profits than just the economic profit in the next quarter.

and we'll report back and that's it.

And so I actually raised prices.

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

He was a good another.

Have you sent in your report?

Now IBM reports, and it's actually great.