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

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

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

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

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

We'll be able to make use of all that to evaporate more seawater and enhance the restorative benefits.

The company's profits soared.

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

Over the same span of time sales have increased by two thirds and profits have doubled.

You use the distribution you get to sell more products.

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

We know how much it takes to build our product.

Kill the goose that lays the golden eggs.

We need to get away from saying democracy matters because of the other things it brings.

It will be to our mutual benefit to carry out the plan.

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

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?

When the Golden Cat Corporation got rid of their 10 worst selling cat litter products, they saw an increase in profits by 87 percent a function of both increase in sales and lowering of costs.

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

Pearl Jam, 96 albums released in the last two years.

I mean, who owns the electricity from those panels for the longer term?

It's good for everybody.

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.

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.

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.

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 assets are generating this.

So if we say change in y for a given change in x is equal to let's see.

The pie's getting bigger because these are real investments that are going to benefit my village.

So what are they?

And then I was left with 1 million.

The rewards would be... enormous.

Increases the components reference counter.

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

Fair enough.

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

But what do you do when the two come into conflict and you're forced to make a decision that either is in Britain's interest, or the interest of Britons, or citizens elsewhere in the world?

We do that again, the first element with the third element. They're not the same.

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.

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

And so, for any given price point, the demand would increase.

This new investment will multiply our profit.

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

It's dependent on how the operations were financed.