Minus 500,000.

Go ahead, eat.

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.

It's good for everybody.

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

So you take the interest out.

You can either profit by this or be destroyed.

We will give you five hundred thousand dollars...

PUMA has 2.7 billion dollars of turnover, 300 million dollars of profits, 200 million dollars after tax, 94 million dollars of externalities, cost to business.

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?

And now we are left with our we're getting close to where we need to get to pre tax income.

But just so you know what EBlT is, EBlT is just Earnings

Beneficiary

It's dependent on how the operations were financed.

The company announced a profit of 200 million after tax.

They don't have to be.

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.

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

A lot of times in the popular press.

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

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

I'll just abbreviate that as Nl.

And you could guess what the next line is going to be, given that this says pre tax.

We study again our die. You observe the following sequence 1, 2, 3, 2.

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

Our interests clash with theirs.

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Supposed suicide.

The company's profit amounted to 250 million before tax.

Money lenders are enjoying a profitable period.

And so you can already imagine that both EBlT and the way I defined it initially, operating profit divided by assets.

I just want to tell you what you've learned, because you did amazingly well.

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.

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

W 0, where 0 is your iteration number, and then you up with it iteratively.

Many of the people involved have special interests or short term interests that get them not thinking about what the implications of the trends are.

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

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

Stop estimating backup size