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

So now we add an interesting line.

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

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

And we add back the interest, at least in this example, we get to an operating profit number.

If I do not earn anything on top, I would still have 1000 Euros total income.

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

Independent of the level of their income.

My total income is far short of 300,000 yen a month, inclusive of extra earnings.

So this box right here is GDP, so it's all the goods and services, essentially all the income, that we produce.

Those earning an extra 500 Euros would end up with a total of 1500 Euro.

And that total revenue is the same thing as the total expenses plus the profit for that firm and that's the same as this one household's income.So let me write this down.The way we looked at the last thing,

Then whatever this generates is actually non operating income.

Income from employment will decrease.

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

Myself.

The basic income extends into the existing income, while the level of total income does not change.

Also those receiving very low pension rates, those with precarious employment and the self employed, who work themselves into poverty.

I'm talking about all companies.

Open 24 hours.

This is Earnings Per Share, not total earnings.

But now, over this period of time, over 2008, 2008 happens.

A health food company.

Construction.

This place is closed, ladies.

(Laughter)

I'm a salesman.

I am a member of the sales department.

We decided to infiltrate some companies and do a very similar thing.

It's open 24 hours a day. You can go in day or night.

And that's how much operating profit my widget company has produced.

So hopefully that gives you a sense of why we add back depreciation when we figure out the cash from operations and how it works out in our cashflow statement.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

So these assets might be generating non operating income.

36 percent of the TNCs are in the core only, but they make up 95 percent of the total operating revenue of all TNCs.

to enlist, Dengler.

Is it open round the clock?

I prefer to work on my own.

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.

Thus The Pirate Bay isn't idealistic.

That's what depreciation does.

You little...

Twentyfourhour Alex Cam.

As of now... myself.

Mining is one of the main sources of wealth in Chile.