Minus 500,000.

The company announced a profit of 200 million after tax.

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 at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

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

So you take the interest out.

Are the profits exclusive of taxes?

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

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

It's dependent on how the operations were financed.

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

Before Interest and Taxes.

I did in that last video it might be interesting to say, is that the pre tax or the post tax return on asset.

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?

But the point of this is, even though their business is ultra stable, they do the exact same thing every year, when we look at the pre tax or the operating income, or if we tax it, or even at the net income, we see a super lumpy business, because in one year they lost 100,000.

In this example that I did in the previous video, it was the pre tax return on asset.

You can either profit by this or be destroyed.

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

And we were to add back the taxes and the interest.

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.

And the result is, right now, this company is the largest telephone company, with 3.5 million subscribers, 115,000 of these phones I talked about that produces about a third of the traffic in the network.

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

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

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.

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 I think you already get the sense that the lower the

Go ahead, eat.

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

Our interests clash with theirs.

That is the notion of investment.

That information then needs to be connected to choices, needs to be connected to a range of options, directions that we might go to trade offs, benefits.

And also you can deduct, actually, the property tax.

His salary is 250 thousand yen per month.

His salary is 250,000 yen per month.

This income tax saving from interest deduction, this is assuming that at that marginal tax rate, you can deduct the property tax and the interest on the debt.

And of course the difference is the money that he had to spend on tax.

So basically Republicans who make more than 250,000 dollars a year don't want to be taxed.

actually I have to pay a little bit more than that, but we're getting a little bit of income tax savings on the deduction on the property taxes.

When we did return on asset, we looked at the operating profit, because this is what our company generated before we paid the bank or Uncle Sam or anything like that.

Kill the goose that lays the golden eggs.

The taxes will be 153,000.

I'm not a charity commissioner.