But the reason I wanted do to Earnings to Price is because it connects it back to things like yield and interest.

You sacrifice now for a return later.

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

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

Kill the goose that lays the golden eggs.

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I'm not interested in material gains.

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

Over here, this axis right here is going to be the selling price,

I'm not interested in material gain.

I am not interested in material gain.

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.

Minus 500,000.

The taxes will be 153,000.

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

Science comes first, but business comes a close fucking second.

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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?

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

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

And I wondered who was doing these kinds of films today.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

I'll just abbreviate that as Nl.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They buy more of your service and they tell more of their friends, which leads to more profit.

Go ahead, eat.

Our interests clash with theirs.

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.

Utilities are still rewarded when their customers waste energy.

This is 350,000 of net income.

This was interest. This was non op income.

This guy makes what is this?

And then I was left with 1 million.

It's good for everybody.

Why isn't it on every poster across the third world?

And we had no expenses in that month.

With trade, there's mutual interdependency and mutual gain between parties.

Why make this thing?

And when I think of near term profits

People do not enslave people to be mean to them.

Are the profits exclusive of taxes?

We know how much it takes to build our product.

So, let's see, you have to do 1.85.