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

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

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.

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

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.

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

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.

It brought me entertainment and I stayed to take my profits.

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

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.

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.

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 I won't go into all of the details of an income statement, but any income statement you look at will have this operating profit line.

So that's going to be 500,000 a year.

And now we're ready to figure out how much money did the operations of this business make?

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

Utilities are still rewarded when their customers waste energy.

Last, but not least, we believe in profit with principles.

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.

That's less than 10 of what I booked for you guys this quarter.

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?

Closed systems, corporations, make a lot of money on the open web, and they're one of the reasons why the open web lives is that corporations have a vested interest in the openness of the system.

The taxes will be 153,000.

War does have its benefits...

I'm not a charity commissioner.

But again, fun is not enough.

Science comes first, but business comes a close fucking second.

And then, how much am I making from the business now?

But now that land will generate ten times the amount of profit.

But in general if you take EBlT and you take out the non operating income, you get back to operating profits.

He was a good another.

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

So while we want to make economic profit for ourselves and our customers, we are willing to do it with a long term view, and we like to have a wider definition of profits than just the economic profit in the next quarter.

They're generating the operating profit, and that's a very important thing to realize in the future when we talk about return on assets.

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