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.

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

The company's profits soared.

You use the distribution you get to sell more products.

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

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

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

We know how much it takes to build our product.

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.

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.

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?

Kill the goose that lays the golden eggs.

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

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.

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

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

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

With trade, there's mutual interdependency and mutual gain between parties.

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

I'll just abbreviate that as Nl.

The assets are generating this.

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?

This new investment will multiply our profit.

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

So what are they?

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

Utilities are still rewarded when their customers waste energy.

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

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.

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

We're almost there.

Minus 500,000.

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?

You book potential earnings as current earnings to artificially boost profits.

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

The taxes will be 153,000.

War does have its benefits...

He's seen that it's possible to have a different set of rules, rules where businesses earn a small profit, so they have an incentive to sign up more customers.