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

The company's profits soared.

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

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

I'll just abbreviate that as Nl.

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.

And this is, I think, a perfect example of what Robert Wright was talking about in those non zero sum things.

The company's profits soared.

To figure out the cash from operations from actually how much cash the operations are producing.

So the amount that this number grows by, the amount that our equity grows by, is earnings.

Because to some degree, rental is kind of the earnings on a home.

This new investment will multiply our profit.

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

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

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

Our profit, once again, is 30,000.

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.

Increase

You use the distribution you get to sell more products.

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.

Our interests clash with theirs.

Minus 500,000.

If it's growing 100 a year for 20 years, this is actually a very good deal.

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.

Well, look at some old ways, some ways that we'd already cracked.

increasing Y

Kill the goose that lays the golden eggs.

What happened is a market that didn't exist all things have just come together, and it's become the year of online education, or it's become the year of the network, or it's become the year of the mobile phone or smart phone.

A benefit to both our worlds.

They're the things that are needed to generate the operating profit.

Go ahead, eat.

We'll grow by six cities of 12 million people a year for the next 30 years.

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

Thanks to a fundamental restructuring, our surplus has swelled three fold.

Enhancing grav plating.

And that's my dad found that.

EBlT in this case would be the operating profit plus this investment income.

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

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.

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

Bank lending is rising because of lower interest rates.