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.

The assets are generating this.

Then the companies or those factories or whatever you want to think of them,

We have this principal that we don't touch that produces returns, social, economic and ecological.

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

Minus 500,000.

But this idea is not always that intuitive.

They have no interest expense, because that's not the point of this video.

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.

The loan bears an 8 interest.

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

So this is the operating profit. This is the money that just comes out of the asset itself.

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

I'll just abbreviate that as Nl.

Go ahead, eat.

I was actually interfering with the process with lots of good intentions.

Unless you're the ballet theatre of Hartford, the purpose of a business is to make a profit.

And that's what these brands did.

And that's my dad found that.

So the sooner you understand that ecosystem, the sooner you'll have a sense of where you want to stay with it.

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.

Our interests clash with theirs.

I believe it's very important to look at how our society ought to be.

You want to have a lower Price to Earnings ratio for the same asset.

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.

Thanks for coming.

How do you do? I'm Kuryu.

People tend to place a much higher value on losses than on gains.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

Kill the goose that lays the golden eggs.

That could be it.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

There is no doubt about what they have done.

We had marginal profit I did.

War does have its benefits...

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

He was a good another.

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

The word arbitrage sounds very fancy, but it's actually a very simple idea.

I asked them all.

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.