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

I'll just abbreviate that as Nl.

The taxes will be 153,000.

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

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.

Net profit comes to 10 million dollars every year.

Before Interest and Taxes.

This is 350,000 of net income.

This guy makes what is this?

So EBlT, I kind of view that it goes backwards.

You can only sell luck in an unequal society because you offer a life changing reward. The monetary system is based on profit leading indirectly to corruption, any game can also be corrupted.

He's not my boyfriend, it's just platonic love with benefits!

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

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

This guy makes 21,000.

Yep, that's right.

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?

Let's compare EBlT to operating profit.

It's part of business aspect of work and making things you don't have to look at the bottom line on

So let's see, if we have 5 million of debt, and we're paying 10 on that, 10 of 5 million is 500,000 a year in interest.

So that's what I'm paying for, arguably.

Read the kind of books that are useful to you.

Read the kind of books that teach you something.

Read books that are worthwhile.

So then you're having, you have your net income, your net income during the period.

And then they'll say well in the most naive interpretation of things, you net income in theory should be the cash you're getting or at least it's some type of profit you're getting assets in the door or at least you're counting as if you're getting some assets in the door.

Company A made 1 per share. 1 of EPS.

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

Our interests clash with theirs.

France will, of course, keep its military bases in Mali.

Net profit for the last three months is a new record high!

But here you see it means very, very different things.

But at this point, you should have a good understanding of at least a basic income statement of a company that sells widgets.

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

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

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.

He derived great benefit from the book.

Why make this thing?

Minus 500,000.

Like so many nickels and dimes.

I'm not a charity commissioner.

Now we have instant neighborhoods outside.

That's the interest rate.

It is to his advantage.

This is what the owners of the company get before they pay the government.