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

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.

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

I put my software and IBM together

Our interests clash with theirs.

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?

Minus 500,000.

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.

People tend to place a much higher value on losses than on gains.

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.

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.

What's in it for the institution?

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

At best we can only hope for a small profit.

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

Let me write that.

And each day, the flow of profits and where they go...

I'll just abbreviate that as Nl.

Go ahead, eat.

This was interest. This was non op income.

This guy makes what is this?

And then I was left with 1 million.

And that's what these brands did.

And that's my dad found that.

Before Interest and Taxes.

They buy more of your service and they tell more of their friends, which leads to more profit.

Simply put, we hate losing what we've got.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

He said to his sweetie, Let us marry.

It is to his advantage.

And these metrics will tell you that.

Where the profits flow, we will s...

You must not think about your immediate profit only.

They allotted to each player the benefits due him.

No pain, no gain.

When it's rainy and windy, he gives up.

Kill the goose that lays the golden eggs.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

There is no doubt about what they have done.

We had marginal profit I did.

War does have its benefits...

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