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

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

Minus 500,000.

The company announced a profit of 200 million after tax.

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

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.

So you take the interest out.

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

Profitable.

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.

So a plus b have to be equal to 50.

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

If it's growing 100 a year for 20 years, this is actually a very good deal.

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

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 this is just the same thing as net income plus interest plus taxes.

So let's look at them over the course of one year.

So notice.

Invest financial assistance, but also management assistance.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Because when someone says earnings, are those the earnings last year?

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

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

Taxation is based on income.

You just have to carry the lines over.

Are the profits exclusive of taxes?

The earnings I just said, this is actually what happened to the company.

Everything on this line would be a valid combination of

So now we add an interesting line.

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

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

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

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 for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.