And why don't you like them as much?

Now, I want you to just look really close up onto what's happened there.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

It's the same plot.

The return on the investment will be high.

People, service, profit.

No. Technology is not destiny.

Why wouldn't I just pour all of my money?

It looks like our profit is jumping all over the place.

The company's profitability improved.

We're not going to be able to do that.

So this is trailing 12 months.

So a plus b have to be equal to 50.

They do one thing at a time. They do it extremely well.

You can probably guess.

Profitable.

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

Because to some degree, rental is kind of the earnings on a home.

The assets are generating this.

Then the companies or those factories or whatever you want to think of them,

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

And as an economist, we can also look at that side of the story. These are people who are productive agents in the economy.

It's our output. We're off.

At any given price point, higher quantity demanded.

Maybe Abby made 50 and Ben earned 0.

Let's say that we don't know that they're truly equal.

We have created more wealth in the past decade than ever, but for a majority of Americans, their income has fallen.

I did some quick calculations.

Because when someone says earnings, are those the earnings last year?

And what's left over for the equity?

A lot of hurdles.

And of course, if the cost of installing a telephone is going down, because there's a digital revolution going on, then it would be even more dramatic.

The earnings I just said, this is actually what happened to the company.

let me do that in that same color and they both have 20 thousand dollars of equipment so their assets are the same the things that are actually generating the revenue and the profit are the exact same thing we're assuming that they are also renting in very similar locations that's what would have to happen for them to have such similar economics.

Sometimes we're profitable. Sometimes we're not.

So this one's worth a little bit more, because it's earning a little bit more money.

And the first thing we need to figure out is, what is our revenue model.

That's really the secret of our success, we're having too much fun.

And the first one is that this whole idea about revenue stream, Steve, I get it.

So now we switched places.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

The president instructed the employees to improve their productivity.