These are key metrics.

So this is trailing 12 months.

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

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

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

Profitable.

Maybe Abby made 50 and Ben earned 0.

The company's profitability improved.

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

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.

It's time to monetise the thing.

Where they start to diverge is below that line.

So a plus b have to be equal to 50.

Corporate earnings in the first quarter improved sharply.

And so I'm left with net income of 350,000.

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

So notice.

Invest financial assistance, but also management assistance.

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

Instead we could say that file sharing is good.

And we can eyeball it right here.

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

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

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

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

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

And what's left over for the equity?

So let me switch colors just to ease the monotony.

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

When? I said it's time to monetise the site.

'But how much food does it produce?'

A better business model, a better way to bigger profits.

It is from advertising that a newspaper earns most of its profits.

Now when you look at 2009 earnings, they look pretty similar.

So these are the people, gee, subscription and half pay rental, let's do some math.

So something very interesting is happening.

So let me write this down.

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

As a matter of fact, you did a pretty large catering.

Everything on this line would be a valid combination of

So now we add an interesting line.

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 now we switched places.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.