In this case, an EBlT might be a little bit more informative.

But when I talk about the asset, I'm talking about only the operating assets.

And the reason why there's a different term is, sometimes you can have the non operating profit.

Because in the last video I talked a little bit about return on asset, where we just took the operating profit, and we divide that by the assets.

I guess I could, too.

I guess you could say non cash assets, right?

This is day 10 in this alternate universe.

The last area is profit itself.

Your real estate agent, when is she supposed to come back?

We thought of people as a liability.

But if you really consider all of the assets, and if you assume that there are some assets there that are non operating.

And then the very first definition I gave you was operating profit over assets.

I didn't want to go there in the first video, and that's why I just said operating profit divided by assets.

I'm a salesman. My name's Neil.

I found a small piece of recruitment ads.

And then you had another 1 million of assets of this 10 million.

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.

Howard Winklevoss founded a firm whose assets are in the hundreds of millions.

And what type of a return can they get?

Capital intensive industries are not necessarily knowledge intensive industries.

ROA, I would say it's EBlT over assets, which is very close to operating profit over assets.

EBlT in this case would be the operating profit plus this investment income.

Why has the average human lifespan increased over the last 100 years?

Now, the angel investor, if we value this at 5 million, he'll give us 5 million more.

So for example, cash is an asset.

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

But how many apple do we produce a year?

The price of human beings across the last 4,000 years in today's money has averaged about 40,000 dollars.

It includes the places where the customers come sit.

Let's say this stock trades down, and it's trading at 50,000.

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.

like the ones we just saw with the really small bars they might have to think about this.

This is cash above and beyond what's needed in the cash register.

He is now encamped at Red Cliff

Interest is nothing but rent.

But anyway, here I want to figure out what is my return on asset?

Something was missing.

And that goes here, under Capital Expenditures.

Myself.

Of course, computers and electronics are now America's biggest industry, while typewriter makers have vanished.

So let's say the short seller, right now let me see if I can draw his balance sheet.

So in any of these periods, the depreciation expense should be added back to the operating profit, to figure out the cash from operations.

It says if you have an identical asset and it's being managed identically, which it is in this case, they will generate an identical amount of operating profit.

Yes, it's an enterprise.

So I'm using the same truck as last year. So now Our ending cash