There is no doubt about what they have done.

Utilities are still rewarded when their customers waste energy.

That's kind of a lot of money

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

last year, they made profits of over 700 million dollars and over 500 million dollars respectively.

And so you're almost ready.

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

You'll get your cut.

I'm going to take the cost of what it takes me to build the product, and I'm going to add some fixed markup whatever I think my profit should be.

And maybe most important, they have a big effect on other companies.

If I could borrow some of their money and use it to pay people that will essentially do the goods and service or do the new project, then I'll generate wealth.

His company makes profits from car exports.

The company earned 300 million on sales of 4,000 million.

Fair enough.

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.

And even if they all kind of know that things are a little bit too expensive.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

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

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.

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.

Now, the CEO of Goldman Sachs Lloyd Blankfein is hailed as maybe the greatest genius since Einstein.

We know how much it takes to build our product.

Mom and pop stores will turn a profit in the new fiscal year.

Now Coke has a very clear bottom line they report to a set of shareholders, they have to turn a profit.

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

And I think that the companies, organizations that are flourishing, whether they're profit, for profit, or somewhere in between, are animated by this purpose.

MlT actually lived by its actions.

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?

And, they could actually push off that utilization and get more profit, by maybe raising prices.

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

And then they benefit through the exposure, advertising and linked sales.

Minus 50,000.

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

I'll just abbreviate that as Nl.

The assets are generating this.

Kill the goose that lays the golden eggs.

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.

Because if you're at full capacity, and we saw that in the last video, when it was just me,

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

The rise in house prices enabled him to sell his house at a big profit.

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.

He made a profit of ten thousand dollars on the sale.