In a world without leverage so if I didn't have all this

So this is just another visual representation that

So its assets.

I still have no liabilities

And then the equity is, essentially we would look at this formula.

I'll do that in yellow.

That assets, A for assets, is equal to

liabilities.

He is a man of considerable means.

Malibu Equity and Investments.

So they really had, let's see, they had an 80,000 loan, a 250,000 asset, so they really had 250,000 minus 80,000, that's 170,000.

And this goes back to the very first video we saw.

liabilities plus equity is equal to assets.

And what I wrote here is, it has 4 billion of liabilities.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

You'd have to give up 93 of your net worth.

I don't want to draw this box.

And rich, eh?

My liabilities would be 145,000.

Remember liabilities plus equities are equal to assets.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

These are their assets, just to get all the labelling right.

So once again, it's just a loan to someone else.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Or they just have a super flush bank account.

So 225,000

let me give you that piece of terminology, it just means net asset value.

This line would have disappeared.

liabilities plus equity.

So I have 100 plus 300 plus 250 so it's 100.

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.

So that's the situation we're dealing with.

I won't use the square tool.

We had a 10 return on assets.

And why don't you like them as much?

And it's worth 100 gold.

That might be true to some degree.

The Raider's a military asset.

And if you look at the species level, you saw about fish.

These are my assets, and these are my liabilities.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.