Thus The Pirate Bay isn't idealistic.

I'm talking about all companies.

(Laughter)

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.

This was interest. This was non op income.

And then I was left with 1 million.

Minus 500,000.

And these metrics will tell you that.

The second area of discrimination is advertising and marketing.

I was in Southern California

Let me write that.

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

That's what it is generating.

Tell us about what Benetech does.

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

And so their operating profit, the amount of pre tax income, but you know, we're not considering financing either, so this is their operating profit or their EBlT.

Myself.

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

My head I think implicitly made the numbers work out nicely.

And a customer development team says,

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.

The University of the People is the first ever non profit, tuition free online University.

Skillful management made a success of the business.

It includes the places where the customers come sit.

So in any of these periods, the depreciation expense should be added back to the operating profit, to figure out the cash from operations.

And the way we saw that is that, their everything, their revenue, gross profit all the way down to their operating profit was exactly the same.

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

Our profit, once again, is 30,000.

let's actually talk about this for a second.

Audio by Bob Hates Frank

I am doing business on a large scale.

He is doing business on a large scale.

Open 24 hours.

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

He has the ability to manage a business.

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.

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

But now, over this period of time, over 2008, 2008 happens.

A health food company.

Construction.

This place is closed, ladies.

But this is the difference between operating income and EBlT.

Well, the thing I mention which I'll expand on later in this course is that one of the mistakes that we've also made for decades is confusing the titles, sales marketing and bus dev with the job specifications.

That's an important fact, because it tells us that in 40 years, the nonprofit sector has not been able to wrestle any market share away from the for profit sector.

You found something. It can be private or public.