Profitable.

So a plus b have to be equal to 50.

This is unreported income gained from an illegal venture.

And that total revenue is the same thing as the total expenses plus the profit for that firm and that's the same as this one household's income.So let me write this down.The way we looked at the last thing,

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

So notice.

Invest financial assistance, but also management assistance.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

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

Never spend in excess of your income.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

It's also a fertilizer. Ammonia production consumes more than one percent of the entire world energy budget today.

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

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

Everything on this line would be a valid combination of

So now we add an interesting line.

But here, the Price to Earnings for 2009 then becomes let's see.

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

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

And how they were going to create demand was through search ads, social media, stadium promotions.

A bookkeeper computes all the company's income and expenses each week.

Are you with me?

And, of course, the last one well, it's not of course if you don't know it is the cash flow statement.

This is called EROEl

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

And we add back the interest, at least in this example, we get to an operating profit number.

What does that tell us?

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.

It's just 10 because one, this is a nice round number.

It's the same plot.

How is it that you make money?

It's just a faster way of saying