Minus 500,000.

The company announced a profit of 200 million after tax.

PUMA has 2.7 billion dollars of turnover, 300 million dollars of profits, 200 million dollars after tax, 94 million dollars of externalities, cost to business.

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.

You should try that out with other examples.

So you take the interest out.

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

In return on equity, the numerator is the net income that we got, so it's 350,000.

You can either profit by this or be destroyed.

And now we are left with our we're getting close to where we need to get to pre tax income.

But just so you know what EBlT is, EBlT is just Earnings

So what they do is they just take your earnings number and you divide by the number of shares.

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?

But anyway, here I want to figure out what is my return on asset?

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.

And you could guess what the next line is going to be, given that this says pre tax.

That is the notion of investment.

Another way to kind of just talk about this is to get the present value of 110 a year from now, we discount the value by a discount rate.

Our interests clash with theirs.

It's dependent on how the operations were financed.

In this example that I did in the previous video, it was the pre tax return on asset.

The company's profit amounted to 250 million before tax.

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.

And so you can already imagine that both EBlT and the way I defined it initially, operating profit divided by assets.

Kill the goose that lays the golden eggs.

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

The probability of reaching S prime given that we started state S and apply action A.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

Go ahead, eat.

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

And that's my dad found that.

Discount rate

Now what can we do ?

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

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.

But in this case, you literally just take the price of the stock and you divide it by the earnings per share.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.