Minus 500,000.

His business returned a good profit.

He derived a lot of profit from the enterprise.

Ten percent of all future profits from his solo venture.

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 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.

They've been good performers in profits and dividends.

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

This was interest. This was non op income.

And then I was left with 1 million.

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

We're better off without the TPP

And these metrics will tell you that.

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

Thus The Pirate Bay isn't idealistic.

I believe it's very important to look at how our society ought to be.

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

Let me write that.

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.

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.

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

Many of you probably have never heard of this term.

Company A made 1 per share. 1 of EPS.

Heavy industry always benefits from war.

The copyright industry is digging a grave for the internet.

But go to war to defend the interests of the USA,

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.

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

Yep, that's right.

Our interests clash with theirs.

And now we're ready to figure out how much money did the operations of this business make?

Let's say this is what we assume is how many cupcakes we sell.

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.

But this is the difference between operating income and EBlT.

They're generating the operating profit, and that's a very important thing to realize in the future when we talk about return on assets.

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.

Utilities are still rewarded when their customers waste energy.

Our economy is adding jobs but too many people still can't find full time employment.

They're the things that are needed to generate the operating profit.

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

Our profit, once again, is 30,000.

let's actually talk about this for a second.

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