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.

Utilities are still rewarded when their customers waste energy.

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.

In a word, he gained much profit.

With far too few of your sinister plots actually turning a profit.

So this is buy 10 apples for 10, and then you would sell those 10 apples for 15.

I'm making 300,000 by providing this service by matching up the savings with good investments.

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.

And then I'll do a more philosophical video on why these things even exist, and why they're useful, and why people may benefit or may not benefit from these things.

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 here too, you can see the implications in the world at large.

You want to have a lower Price to Earnings ratio for the same asset.

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

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.

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

It looks like we lost 200.

And the song, 18 months old, went back to number four on the iTunes charts.

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.

When you look at elementary school children, we have hundreds and hundreds of millions of children around the world that could benefit tremendously from being able to be connected to the Internet.

For example, when you're offered 50 dollars now or 60 dollars in a month.

You can either profit by this or be destroyed.

The pie's getting bigger because these are real investments that are going to benefit my village.

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

I made a good profit by selling my car.

And here are the most surprising results.

So most cash flow statements, they'll start so I'm going to do a cash flow statement right over here

It doesn't think about things like interest income from your bank account, or interest expense on any loans you have.

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

Heavy industry always benefits from war.

He derived great benefit from the book.

And this is the profit from the operations of the company, or you could say from the assets or from the business or from the enterprise of the company.

This is 350,000 of net income.

The assets are generating this.

It's dependent on how the operations were financed.

They have to give permission to let the stock be borrowed, and they benefit, because they get some cut, hopefully, they get some cut of the rent, or the interest that I'm paying.

It's good for everybody.

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

The word arbitrage sounds very fancy, but it's actually a very simple idea.

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

That actually brought the entire search industry from on its way down to being one of the most profitable parts of web commerce.

Cash is a asset because you can use it to buy stuff and get people to do stuff for you

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

Maybe it was 4 , or 3.5 .

It affects your sales model. Are you going to hire direct sales? When do you hire them?

If this technology is widely adopted,