It looks like our profit is jumping all over the place.

The return on the investment will be high.

So this is trailing 12 months.

So now we switched places.

Why wouldn't I just pour all of my money?

Maybe Abby made 50 and Ben earned 0.

Let's say that we don't know that they're truly equal.

Sometimes we're profitable. Sometimes we're not.

The company's profitability improved.

So a plus b have to be equal to 50.

And we add back the interest, at least in this example, we get to an operating profit number.

Where they start to diverge is below that line.

Profitable.

It's time to monetise the thing.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

At any given price point, higher quantity demanded.

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

These are key metrics.

But I just want to give you the gist of what's happening.

A looked expensive.

So this is exactly the same behavior that you saw, but in a slightly better rendered version.

Because when someone says earnings, are those the earnings last year?

And what's left over for the equity?

But just so you know what EBlT is, EBlT is just Earnings

Well... In that case there is nothing I can do.

The earnings I just said, this is actually what happened to the company.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

So this one's worth a little bit more, because it's earning a little bit more money.

And the first one is that this whole idea about revenue stream, Steve, I get it.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

It's called the Extractive Industries Transparency Initiative.

Abby earned 10 more than Ben.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

The reason why you are willing to pay a higher Price to

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

It's even worse and that is another video I just got last night if you render that a bit more realistically.

Once you add it all up, though, and with Keller, the revenues are almost 10 less than was actually received.

This is a gender linked trait, by the way.

You go to some VC who specializes in kind of helping people get to that profitability stage.