everyone and welcome. This is Melissa Arma with the stocks portion of reviewing Tesla. This was the gap of the week. The play of the week.  We did the day trade in this. I did the ad in this yesterday. Huge trade. This really made my week. I mean, there's no other way to put it. I mean, so it is earnings season. This is the best time to trade. This is when you're gonna get the biggest moves. We saw that in this this week. You know, is every earnings gap a good gap to play? No, no, it's no. Quite frankly, I mean, sometimes it's, you know, it's a nothing burger actually, but this was not a nothing burger. It was a something burger and we did it and I loved it. And I had a feeling it was gonna gap down and I'd always do this, but I actually called the, I actually called puts, you know, before it fell. So you could have, I called the 185 puts, which I think one person held into the day. I didn't. I get out of them here, they were up here. One person held them and if you had done the 185 puts and held them through the earnings, you would have made over $25 for the, or 24, 25, I think 24 something was the high of that. And it was just a huge trade if you held it. Again, the conservative thing to do was to get out here because you were up money here. It was a good solid trade in and out. Now, I also called the 175s here. Now that was a big trade boom on this particular day if you got in and out here. So again, there was opportunities to chunk it out in Tulsa this week and the options. Again, I called puts. Now just let me show you what we did as far as the day trade over here yesterday. I could not have traded this any better. I could not have traded this any, any, any better in my life than I did yesterday. Wayden got the right entry, did the ad, held it. I mean, I just couldn't have traded this any better. This was professional trading, expert trading at its finest. I was extremely careful, extremely cautious, but I was aggressive anyway still too. Did the right thing with the stop. Wayden did the ad, did it all. So anyways, here's where this closed the night before. Roughly up here, 180 and change. Here's what opened here in the morning. My solid came out at night. Solid at night and then it opened in the next morning around 1.66. And people try to buy it for a gap fill.  While sometimes things reverse in the gap, that is not a consistent way to make money in the market. So I developed a system to rate the gap going in the direction of the gap. Can you always short a gap down? No, can you always go long a gap up? No, but I developed a system if it rates 20 points or more per the 26.0 rating system to take it in the direction of the gap that is a system that I use every day for every trade that I take. So long story short, this worked and we did it. And then we did the ad and we got the drop and we got the drop and it almost went to 1.60. Dream Target was 1.60, it got really, really close. And then today it's bouncing with the market. Low today was 1.60, 1.32. So this was shocking to a lot of people that have been very bullish I think in Tesla. And again, this was an earnings play. But the market's rallying right now. So obviously Tesla's rallying today. Looks like some people did buy this today because today it did gap up. And it'll be interesting to see where this goes in the next couple of days. And of course, Tesla is with the spy. So we'll look at the spy, we'll look at Tesla, we'll see what happens with it. It was a beautiful trade. I really just did a great thing there. We didn't even take any stops in that before it went. I waited, we took it.   That's not realistic. But it is realistic to get massive, massive, massive winners like this once a week in earnings season or more. So I don't know what that big one will be next week. The big one this week was Tesla. Gap of the week, play of the week, short of the week, put of the week, all. So have a great week and everyone. For those of you that got this trade, congratulations. And the one person that I know that held the 185s was Muhammad. So congratulations to him. Email me and Melissa at thestockswish.com if you'd like to sign up for the Gap Optionist newsletter or if you'd like to learn my method in the Golden Gap course. Next class is April 29th and 30th. Have a great day.


Hi everyone, Joe for Jaspy's casewrakes.com. In a buzzer beater, I had all my windows closed Ready to say my goodnight to the few people that were still remaining in the chat, but at the buzzer Eric picked up the final six spots in this break Which unlocks that and unlocks the promo tonight because I promise that if we knocked out that Chronicles draft picks filler and pack 860 That'll unlock the promo plus 500 bucks and it did So big thanks to in fact the only two people that had purchased spots More recently was JC and Eric and then the last order before that Anthony's was like three hours ago So that this break was dead in the water until JC got a spot and Eric Hit the game-winning buzzer beater So hopefully the next time you see him in the chat be sure to thank him. Let's roll it Let's randomize both lists. So we'll do the break first and then we'll re-randomize that list for the giveaway the promo video The promo randomizer different video. So this is for the break seven times for names and teams one two three four five six and seventh and final time and seven times for the teams one two three four five six and Seventh and final time Suns down to the jazz All right, there'll be no trade window in this break. We're just gonna get to that flawless random hit giveaway spot There's the first half of the list right here and There's the second half of the list right there Did I not post that Alex? Alex asking if I if I'm gonna post the origin six break. I Should have posted that ages ago Well, let me let me double check this. Did I not really upload that origin screen? Come on, Joe I've got it on my breaking log All right. Oh, sorry, Alex. I'm gonna upload that after I rip this pack Terrence Mann rookie green Brandon Clark is for the Clippers the pink camos which are exclusive to this set Maybe you'll see a big rookie here Kyle guy. No Terrence man. It's all right. All right. All right. Oh the whole point of this isn't what what's in there But who's gonna win that $2,900 spot? So again, big thanks everybody who got into the action here. Let's flip back to the list. Let's gather up everybody's names And remember you're part of the the promo tonight, too, even if you don't win that spot But this is for the flawless spot fingers crossed. Good luck. Let's roll it randomize name on top after seven six and a one Lucky seven times one two three four five six and Seven then final time name on top after seven twenty nine sad spots Very close Eric But only one happy person. Wow, and that's JC Congrats to you JC. You've just won yourself a twenty nine hundred dollar flawless random hit spot You can see the details on the website Jasper's case break calm Eric. Thanks for knocking this out. Thanks to JC Thanks to everybody for taking the risk on this. We really appreciate it. I appreciate it I'm Joe for Jasper's case breaks calm and I'll see you next time for the next one. Bye. Bye


In last class, we were talking about how we can use different ways to record the correct value of cost of goods sold in inventory and in that we found that there is an argument that can favor the first in first out and also a possible argument that can favor a last in first out, while both of them are correct methods to record cost of goods sold and inventory. Now, let us see what will be the argument that favors first in first out. First in first out, the assumption is the inventory that gets acquired first, gets used first and gets sold first. So, that is the first in first out logic. Now, why is that favored over the last in first out? One is for a purpose of accounting, it is more accounting than conceptual that this first in first out captures value of inventory that you see in your balance sheet. In your balance sheet, you see that there is some value against inventory and as somebody using the balance sheet, I would want the value of the inventory to be most recent and exact. Now, this first in first out will capture the inventory that is not used in its recent cost of acquisition, because what gets used is the inventory that was purchased sometime back, which does not sit in your balance sheet any longer, but because it gets consumed and it goes as cost of goods sold. So, what sits in your balance sheet need not be the most recent, but definitely not the first. So, it gives a fairer estimate more correct value of the inventory, because it is not the one that was purchased first. It is not I am not saying that it is the most recent, it will also include inventory that was purchased the most recent, but then the FIFO captures the correct value that is a correct estimate of the value of the inventory in your balance sheet, because always I am more interested in knowing what is the fair estimate of my asset items in the balance sheet, this is one accounting justification. Another thing is if I use first in first out, there is more likelihood that it maximizes why, because very unlikely that the cost of inventory reduces there are cases, but in the majority of the circumstances that we handle, we have always found that the cost of inventory, the cost of certain material, the cost of acquisition is always increase year on year at least to cover inflation. So, when the cost of inventory increases year after year, if you use the first in first out method, what sits in your cost of goods sold is that value that would have used the maximum inventory that was purchased first, because it is first in first out. And because the cost of inventory is rising over the accounting period, in all likelihood the cost of goods sold will be lesser than it would have been had you adopted last in first out, because in that case the cost of goods sold would have recorded the cost of acquisition at higher acquisition prices that by reducing your net income. So, these two broadly are arguments that favor the use of FIFO method. Likewise, there are also arguments that support that I should use last in first out. One relates to your principle of matching, principle of matching says revenue versus expenses. When you are recording revenues in this particular accounting period, you have to take into account the cost related cost to this particular accounting period. And if it is a revenue that is happened at this time instant x, you have to necessarily take into the inventory that was purchased in the vicinity time period x, fair enough. Another second thing is it reduces taxable income. Why? Because higher cost of goods sold though it reduces your net income, the profit before tax is also relatively less. And hence your taxable income tax that you need to pay is less, your taxable income is reduced. So, these are two things, two points that favor the use of LIFO over FIFO. But I have told you that the most popular method that is used is the first in first out, not that it is the only correct method that is the most popular method. Now, we have covered revenues, we have covered cost of goods sold. The third thing that I said I will be discussing in class is the principle of depreciation. And is there again different ways in which we can depreciate an asset? I have told you that depreciation is an expense which is non-cash because cash does not really flow out of the entity. And it is an expense because we have to charge the entity for using an equipment that gets depreciated. Typically assets are of two types, tangible and intangible assets. Your tangible assets are your land, building, equipment and all that. Your intangible could be your patents, goodwill, trademarks. So, such non-physical assets are your intangible assets. And we depreciate tangible assets. And the equivalent for intangible assets is what we call as amortization. When we depreciate an asset, I have told you in the previous classes that it is only the capital expenditure that creates an asset that gets depreciated, not the revenue expense because that gets written off in that particular year. So, when an asset is depreciated, it means that we are charging the entity some expense for using that particular asset for that particular accounting period. So, which means when you do depreciation, there is a depreciation expense. And how does that get charged? Suppose the cost of acquisition of the asset is x. And let us say the life of the asset is 10 years, then the annual depreciation expense is x by 10. So, every year in your income statement you would have a depreciation expense of x by 10. And in your balance sheet that corresponding x by 10 gets reduced in the value of the asset cost of x. So, you will have x accumulated depreciation x by 10. So, the final book value of the asset will be 9 by 10 of x. Then in the second year, it will be 2x by 10. So, it keeps on reducing year after year while the annual depreciation expense is x by 10. Now, what do you depreciate? You depreciate the cost of acquisition. At times you might even have residual value for the asset. Residual value means the residual value is suppose after the lifetime of the asset, it can be sold for a particular value x, then that x is the residual value. In this case for the sake of easy understanding, let us say it can be sold for y, then y is the residual value. Then what has to be depreciated is x minus y. If residual value is y, the depreciation x minus y has to be depreciated or depreciationable. I do not know whether that is a term that is only used let us say for understanding s. So, the value to be depreciated it is this that gets depreciated over a 10 year period. The question is are there just as we saw cost of goods sold different ways, are there different ways in which assets can be depreciated? Yes, there are and I am just going to deal with two such methods. One is your straight line method which is just a linear depreciation and another method that is called the years digit method. A straight line years, so these two are the depreciation methods that we will be seeing. For let us say for an illustration that I purchase an equipment that is worth 1000 rupees and the estimated life of the equipment is 10 years and it has no residual value. The residual value is 0. So, what do we do? So, we are in year 5, 6, 7, 8, 9, 10. Let us say I have a straight line method of depreciation here. So, in a straight line method what is my annual depreciation? It is 100. So, every year it is 100. Why? Because the cost of acquisition is 1000 and residual value is 0 and it is a 10 year lifetime. So, the annual depreciation is 100. What is the net book value? At year 0, we just purchased it. I mean, we just purchased the net book value is 1000 and finally, it drops by 100 every year and the net book value at the end of last year is 0. This is a very straight forward case. This is a straight line method of depreciation. The next thing is called the year's digit. Now, in a year's digit, the depreciation rate is no longer linear. We are not adopting a straight line method. We are not hence taking a linear rate of depreciation. In this case, it is 10 percent every year. Then, what is the rate that is adopted? The depreciation rate is a fraction that is calculated by one particular method. In this case, it is 10 years. So, let us say we call it the sum of the year's digits. 10 years means n into n plus 1 by 2 is 55. How did we get this? This I call the sum of the year's digit, S y d and this forms the denominator and the rate, depreciating rate is calculated this way. So, the denominator is the sum of the digits, 55 that is constant. In the numerator, it is n that is the total life of the asset. So, the rate of depreciation for the first year is n by 55. For the second year, it is n minus 1 by 55. For the third year, it is n minus 2 by 55 and likewise keeps drop. So, the rate of depreciation keeps changing in this particular fashion and so on till you get 1 by 55 here. Now, what will be your annual depreciation in this case? 10 by 55 of 1181.82. Then, what is your net book value? At year 0 to 1000, now it becomes 818.18 and in the second year, your annual depreciation becomes 163.64, 9 by 55 times 1000. So, your net book value is this minus this. So, third year, your annual depreciation 145.45, your net book value is 509.09. Likewise, this also keeps on dropping and you will see in the ninth year, you will have the annual depreciation as 36.36, 18.18 and here the depreciation is 18.18 and the net book value is 0. In both these cases, the net book value at the end of the life of the asset is 0. Now, what makes the difference? The difference is that the annual depreciation in the case of a straight line method is 100, in the case of the year's digit method keeps changing. Now, why is this relevant for our discussion? Now, if you try to plot a graph between the year and the method that you actually adopt to calculate the annual depreciation. Now, the annual depreciation if I use the linear method, let us say it was 180 here, continues to be 100. Suppose, it is sum of the year's digit. Now, you would find that somewhere between suppose, I fill all these details 127.27, here it is 109.09, then 90.91, 72.73, 54.1, 55. You find that between the 5th and 6th year that the annual depreciation expense, which was higher till the 5th year in the sum of your digit method gets below 100 during the 5th year and 6th year period. So, somewhere here it crosses somewhere here, why is this important? It is important because from a reporting point of view, I might decide to get advantages of a reduced taxable income because of an increased depreciation expense for the first 5 years. If you look at this, the first 5 years I have the depreciation expense more than 100 here. Now, here are two options that is available, one annual depreciation expense of 100. In the other case, the first 5 years the annual depreciation expense is more than 100 and I decided to choose this. Why? Because I receive accelerated benefits of higher depreciation expense, which reduces my taxable income. What will I do after 5 years? I switch over to straight line method, it is allowed because remember when we discuss the principle of consistency. Though it says that you follow the same method that you are adopting, if at all you are making a change, you just have to be reasonable in explaining why you are making this change. In this case, it is reasonable to say that 5 years I have followed some of your digits so that I get the benefit of the reduced taxable income ahead of time and then after the 6th year whatever is the remaining depreciable amount, I depreciate it over a straight line method and just I have to while I file my income statement and balance sheet, I just have to explain that I am shifting my sum of years digit method to a straight line method and then for the remaining 5 years, you can continue to follow the straight line method of depreciation. So, these are the 3 special cases that I thought you should be knowing and of course, as I told you before there are other special cases that can add more complexity to this subject, but we are not going to dwell on those special cases. I am sure all of you you will feel little comfortable when it comes to understanding and interpreting a financial statement and then you will know what has happened behind the screens that create this financial statement and that is where you will begin to appreciate the entire concept of accounting, the principles of accounting, the principle of duality, T accounts, generalized, why did I do this, why was expenses recorded this way, why not this way, how sales is recognized, how cost of goods sold is being calculated. So, all these conceptual understanding is what that I gave you in the last 14, 15 classes and with that conceptual understanding, you will be able to prepare a balance sheet and income statement and a cash flow statement. You will be able to identify relevant activities and measure those activities in monetary terms and communicate in monetary terms by adopting a uniformly followed practice and in the process you would have created a balance sheet and income statement and a cash flow statement. Now, the exercise does not stop there after you have created a balance sheet and income statement and cash flow and of course, I told you why we do this. Financial accounting is little different from management accounting because the users of the information that comes out of financial accounting is not only those inside the organization, but also those outside the organization, it could be your bankers, it could be a shareholders or whoever they are. So, that is one main reason why financial accounting gains importance. So, it is not just that you prepare this and then your job is over. After I prepare, what am I going to do to these financial statements? Can I understand what these financial statements mean? I will be able to understand them and add more sense to these financial statements. If I start analyzing these statements by calculating certain set of ratios and these ratios can explain whether my firm is liquid enough. If I calculate the liquidity ratios, whether there has been efficiency in terms of the activities that the firms engaged, I can calculate some ratios based on activity to understand the leverage of the capital structure of the firm by calculating the debt equity ratios. To understand the profitability of the firm, I have some profitability ratios. Now, let us see how these ratios are important as a way to analyze these financial statements. Now, these ratios are important because looking at a financial statement, looking at balance sheet and income statement, it just tells me that cash is this much, inventory is this much, income is this much and all that. Now, if I am able to relate all those entries, these balance sheet figures and income statement figures and try to see whether there is some relationship between these or I am able to calculate some ratios based on these entries. I can make some fair judgment on the performance of the entity and if I am able to do this for the previous year, the year before that, then I can also see how there has been a progress in the firm or if I am able to do this and compare this with my competitive firms ratio, then I can know how I perform against competition. So, it is this performance of an entity based on these ratios becomes very important when it comes to using these financial statements to analyze them. Suppose, I want to compare one ratio with the previous year's ratio, let us say current assets to current liabilities, that is 1.1.92. So, previously it was 1.1, now it is 0.92, what does it mean? It means that last year I had more current assets as a relative to current liabilities and this year I do not have enough current assets to cover my current liabilities. Have I done better? Looking at this ratio I can say no, I have not done better because I do not have enough current assets to cover my current liabilities. Likewise, I calculate different ratios. Why? Because as I told you, it is not somebody inside the firm that is interested in doing this analysis, since this becomes a public document, your annual report has this income statement balance sheet, anybody can do this ratio analysis. As a shareholder, I will do the ratio analysis. As an investor, as a banker, as a member of the leadership team, as government, as anybody who can use this information, who thinks that this information is necessary can do this ratio analysis. Now, let us begin with the liquidity ratio. Liquidity means how cash rich or cash poor the firm is. It refers to the solvency of an entity and also it means that how quickly can assets be converted and realized to cash with very minimum or in fact no loss in the value of the asset. If an asset can be converted with no loss, then it is the most liquid form of asset. The most liquid form of asset is cash by itself. So, liquidity measures the solvency of the firm. There are two ratios that actually explains the extent of liquidity of an entity. One is its current ratio, the other is the quick ratio. Current ratio is your current assets by current liabilities. By the way, current assets minus current liabilities is a net working capital. I have not explained to the class what working capital is because I do not think that the subject matter for this course. I will be talking more about this in the next course, but it is enough for you to know that working capital is that finance that is required to meet your short term day to day requirement and its purpose of easy calculation assumed to be net working capital is assumed to be current assets minus current liabilities. Now, current ratio is just current assets minus current liabilities. What does this mean? It just tells you the firm is solvent enough or is not solvent enough to cover its current liabilities. If the ratio is more than 1, which means you have enough current assets to meet your current liabilities. If it had been 2.1 last year, 1.3 this year, it means that from the solvency perspective, I view that the extent of liquidity has reduced as against last year. Because my current assets which could cover 2.2 times the current liabilities now able to cover only 1.3 or 1.4 times the current liabilities. But your current assets includes your cash, your accounts receivable, your inventories and in the order of liquidity priority inventories is the one that probably takes more time to be converted into cash. So, I am not interested in actually having inventories as part of my current ratio because it is very difficult to convert inventories without reduction in value. So, I want to knock off inventories and then use another ratio that can explain the same solvency from a different perspective. So, if my current assets from a current assets remove inventory, current assets minus inventory divided by current liabilities that is called the quick ratio. Again, this is a liquidity measure, but then removes inventories and tells you the extent of solvency, how much of current assets minus the inventories that I have with me and how to what extent can it meet my current liabilities. So, this is the liquidity ratio. The next ratio is the activity ratio. The activity ratio is got to do more with the efficiency with which assets are being used and realized to generate sales and generate cash. So, this actually measures the speed at which assets are converted or utilized to generate sales and generate cash. And what are these types of ratios? First is the inventory turnover ratio, cost of goods sold divided by inventory. How quickly is your inventory being converted into a saleable good? Another inventory, I mean the activity ratio is your average collection period. Average collection period explains the receivables management efficiency of the entity. Suppose in a balance sheet you have average, I mean you have your accounts receivable say x, that x divided by the total annual sales by 360. This annual sales by 360 sales per day and your total accounts receivable divided by sales per day tells you on an average you have to wait for certain number of days before you get the real cash for the sale that you make. Now, how would that figure you want it to be? The longer is your collection period, it means that you are poor in your receivables management. So, as much as possible we need to have shorter collection periods.  There is no collection period as against a manufacturing entity where you allow credit 30 days, 60 days credit. So, the collection period the longer or shorter explains how your receivables management as an activity is efficient. The longer it is it is not that efficient, the shorter it is it means that you have a better receivables management policy in place. Opposite to that is your average payment period which is got to do with your vendors. The total accounts payable divided by the annual purchases or you could also use cost of goods sold instead. The average purchases you make every day and your total accounts payable. So, if you use these two numbers you have a ratio expressed in days you have a number expressed in days. This tells you that let us say if this is 20 it means for every dollar every rupee that you purchase you take 20 days to pay your vendor for that. And within allowable principles if you are able to extend this 20 to 25 days, 30 days then it is good to the firm because you are elongating the cash outflow and this is opposite to the view that you take for receivables. The more and more you are able to stretch your payment period the more and more you have internal cash accruals that can be deployed for other activities. Sales by net fixed asset tells you how quickly your asset is been utilized. This is an asset turnover ratio how quickly you are able to utilize your asset to calculate sales. So, every one rupee of asset is generating some sales. The efficiency with which assets are being utilized to generate sales can be calculated using your fixed asset turnover ratio. If you include all the assets both your fixed and current assets it is just the total asset turnover but both of them in principle conveys the same meaning the extent to which assets are being productively used to generate sales. So, this measures the activity of the firm all these activity ratios. The next ratio I have not spent a lot of time on this but this we will be spending a lot of time and we actually do finance for engineers is to analyze the use of debt. Now, debt measures the extent of financial leverage. Every firm raises capital through different sources. The two most popular sources will be debt and equity and based on the characteristic of the firm the characteristic of the industry you will find different firms in different industries having different debt equity ratios. So, you can never say that a debt equity ratio of 40 percent is the best. It could be best for a given context you can never say that this is the right debt equity ratio because it changes from industry across companies. Now, two things that we would be interested in measuring to see the debt ratio is first the extent of leverage of the firm how much of debt it needs to be it needs to pay and whether the degree of indebtedness whether it is high or low considering the circumstances that the firm is operating. The second thing is whether this firm's ability is the firm's ability to meet its debt obligations whether it is able to service its debts. These I can calculate I can make an assessment by calculating these ratios. First thing is a simple debt ratio of the total assets that you have created total iabilities divided by total assets tells you the debt ratio of the total assets that you have created how much has come from the liability. Debt equity ratio is out of the total capital that you have from which you have created these assets how much is the debt component how much is the equity component 60 percent debt 40 percent equity 20 percent debt 80 percent equity. This we will use when we actually calculate the optimum capital structure of a firm when will you say that the firm is not optimally leveraged either it could be under levered or over levered. Now, this ratio we will use to find the optimum capital structure of a firm which tells you whether there is the right amount the right mix of debt and equity that this firm has been utilized as a result of which the value of the firm is maximized. So, this ratio becomes important from that perspective times interest earned ratio is your earnings before interest and taxes what is the earnings that you have before your interest and taxes divide that by your interest. It tells you the propensity of the firm to meet its current debt obligations whether it will be able to meet at least its interest obligations. So, this is a set of debt measures the ratios that used to calculate the debt profile the leverage the financial leverage of an entity. The next important ratio is the profitability ratio at the end of the day everybody needs to know the net income that the firm is making. The profitability ratios gross profit by sales your gross margin by sales gives you the gross profit again when we saw the income statement I told you what the operating margin is your operating profits are in this case the earnings earnings before interest and tax divided by sales gives you the operating profit margin. The net profit margin is your net income divided by sales that is the profitability measure net income divided by sales. Suppose I want to measure the return on assets for every dollar or every rupee of asset how much is the return that I generate then it just your net sales I mean net income divided by total asset. As a shareholder I want to know the return on equity it is just all the earnings that is available to the firm that needs to be dispersed with shareholders divided by the number of I mean the value of the total shareholders equity. So, that gives you the return on equity. So, the net income after taxes which is actually entirely the shareholders divided by the total value of the shareholders equity is the return on equity. The earnings per share again the net income that needs to be distributed to shareholder divided by the total number of shares outstanding in the firm. The P by E ratio is the price to earnings ratio is the market price of the common stock that is trading market price divided by the earnings per share that is the P by E ratio. So, these are all your profitability ratios. Another important ratio that you need to know is called the DuPont ratio which is more integrative and you will understand why I am saying this word integrative because it just dissects the financial performance into three identifiable ratios each of them important in their own way and then integrates all these three to arrive at a final ratio. Now, you see that the return on equity is a very very important profitability ratio because the understanding is that the purpose of any firm is to maximize shareholders value and one indicator that tells you yes shareholder value is getting maximizes the return on equity. Now, that return on equity as I told you before it is the net income divided by the total equity value that can be divided into three parts. One that explains the net profit margin in this case it is net income divided by sale and then another important measure is how efficiently assets are being used to generate the sale and that you can measure by calculating the sales divided by the assets because that gives you the efficiency of the use of asset and that is called the asset turnover. And then another thing is the extent of leverage and that you can measure by having a look at the total assets that you have created how much has been because of equity. So, asset by equity that measures the extent of financial leverage. Now, all these three looked at individually are very important ratios one net income by sales is a profitability ratio sales by asset it is a productivity activity ratio it tells you about asset turnover asset by equity it is a leverage ratio it tells you the extent to which debt and equity is being used. And each of them on their own are important ratios and all of them combined will explain the return on equity. So, if you are able to break the return on equity into these three parts and see the contribution of each of these ratios to the return on equity you will be able to understand this concept a little better because then you will be able to know whether profitability can be improved the asset turnover can be improved or the probably can change the capital structure. So, that the return on equity also improves we are just dissecting the return on equity into these three important ratios not that these three are the only important ratios because all these three put together also forms return on equity which is also a very very important integrator that speaks about shareholder value creation. So, dupe on ratio splits return on equity into these three parts to make an individual analysis integrating them to calculate the return on equity. So, what we have done during these classes is to understand financial accounting from the perspective of identifying activities within a firm that makes monetary sense and recording them in by following a set of principles that is uniformly accepted. And then communicating that information by way of creating an income statement balance sheet and cash flow and using these statements we are able to make a judgment we are able to make an analysis of the performance of the company. So, this is in a nutshell in a single sentence what we have done in these last 14 15 classes. And I am sure you will now begin to appreciate the financial statements that you see I am sure you will be able to identify activities within the firm and monetize them record them based on some accepted principles. And when you do all of this meticulously correctly you will definitely be able to create your own the firms balance sheet income statement and cash flow statement. So, next class we will be talking a little bit about management accounting because accounting I said I will be dealing with financial and management accounting. In the next class we will be spending little time on management accounting after which I will be concluding the chapters on accounting and then we will shift into strategy and economics. Thank you.


Mark Thornton has a special offer for fans of minor issues, a free copy of Murray Rothbard's famous work, Anatomy of the State. This is a limited time offer, so act fast. Get yours today at Mises.org slash issues free. Hello and welcome to another episode of the Minor Issues Podcast. I'm Mark Thornton at the Mises Institute. Greenwashing is a relatively new term to describe faults and misleading claims of environmental benefits of a product or business practice. The point is that companies can advertise their efforts to be green while continuing various profitable activities that environmentalists considered harmful. The idea here is that companies are gaming the system or profiting off of well-intentioned, sustainably-minded consumers. The term was coined 40 years ago by a student in response to a hotel that wanted customers to reuse the towels in their rooms in order to save the environment and of course save money for the hotel. As an Austrian school economist, I can agree here with the environmentalists to a point, but let's see how far on the other side of the bridge they are willing to go. Let's start with the idea that human beings are motivated to achieve their goals. That's true whether you are Mother Teresa trying to save bodies and souls, corporate CEOs, or a heroin addict just trying to stay drugged up. It even includes environmental do-gooders. In the words of mainstream economists, everybody wants to maximize their utility, however they want to define it, and minimize their cost. The difference between utility revenues and good feelings is set against labor, expenses, and psychic toil. No matter how or what you are measuring, the difference between the cost and benefits can be called profit, psychic, material, or whatever you want. Environmentally-minded people have put much pressure on companies, nudged them, boycotted them, and turned their dollars over to companies with green profiles like Patagonia. Those people have also put pressure on politicians to do the right thing. Special interest groups have likewise put pressure on politicians. In the case of governments, bureaucracies, and NGOs have also created additional pressure in the form of propaganda, pseudoscience, red tape, legislation, etc. Please note, I am not saying that everything environmentalist about science is wrong, far from it. But at the same time, no one can deny that scientists have fudged and defrauded the science and revealed themselves as a group of biased and unscientific people, particularly those scientists who are dependent upon government research grants. Industry scientists also have a green agenda. They want to get more electricity out of every lump of coal. They look to conserve resources, that is, costs, for all the products they are involved with, subject to what consumers actually want. That is why I have heard many Austrian school economists describe themselves as conservationists in contrast to environmentalists. This is based on the idea that the free market does the best job at conserving and allocating scarce resources, particularly over time. Deviation from this constrained agenda hurts consumers, businesses themselves, employment, pensions, etc., and very often hurt the environment as well. Those losses and harms are difficult to see, but imagine a hypothetical situation where Apple iPhones have been giving off a toxic pollutant that eventually causes blindness, and what that might do to the stock price of Apple if that information was revealed. Do incentives work to protect the consumer most of the time? Of course they do. Businesses have had their profit agenda sort of genetically modified by the green agenda. Environmentalists can see greenwashing, but they cannot see the damage that the green agenda does to the environment itself. The direct cause of this mutation is regulations, rules from the bureaucracy, carbon taxes, ESG ratings, etc., designed to protect the environment, but that ultimately promote the waste of resources and the diversion of resources in inefficient directions. Efficiency is a turnoff for many, but it is directly related to environmental concerns. It's also what causes greenwashing. Hence, businesses are indeed gaming the system, trying to profit an environment that is deluged with green constraints, and I agree it's not good for the environment.


I wish I could call you. I wish I could call my nigga, fool. Yeah, because I hear you say that a lot.  I was telling the niggas, go sign them, bro.  Hey, look how they do you. Yeah, that's how I feel what he was saying.  I'm gonna kill him. That's what he's saying. My partner switched up. That's how they rap to me. Everybody ain't your free. Here we go. Why you said that Dallas is missing Goyaio? Because he got the internet pray. Let Goyaio get out. He doing interviews. He doing this and doing that. Only thing about it, if he don't come out with a hit in the first six, seven months, that's a wrap. Well, he probably do all right because Supreme is back talking with him. Yeah, baby. They back, they conversating. And they looking to move on the movement once he come home. Yeah, I understand that was Supreme. What? Gary, I got to get you as Supreme on here, girl. I told him I was gonna, I want to put y'all on here together. I told him a thousand. You got to be some money involved.    You don't know Randy's all about the money? Nah, but I'm trying to tell them, man. I want to be good. I want to see them, man.  So you don't talk down about the whole situation. Nah, he or not. I got it, man. There goes your shoes, my kid. Who's gonna win the game tonight? Mavericks. Oh, it lets you win. What's it got? No, Mavericks game. Yeah, Mavericks, Mavericks, Mavericks, uh. We need to try it, Luca. Who is their biggest competitor? Because you always, you always think that. For the Mavericks. Yeah, you always say the Mavericks gonna win. I got a tattoo on me. Right there, I got them bad. You love them that much? Yes, I love them. Where the Cowboys tattoo? Nah, I'm a San Francisco fan. Yeah. What? Mmm. I'm a San Francisco fan.  Yeah, I'm some J. Rice, Ricky Walls, Martin Hanks. You from down here? You need to stop that? My checks come from San Francisco. Every time I get paid a check, it's like San Francisco. That's the whole game? Nah, it's serious. Empire in San Francisco. I know. I said that's the whole game. That's the whole game. The money come from? Yeah, that's what it said. Nah, I've been to San Francisco. That's how I got work. God let mode three sign the empire. And I went to my first San Francisco game this year. Wow. By myself. I flew it there by myself. I wish I could call it three, three. I thought y'all said y'all was going, that's what y'all was playing on moving up that way. Yeah, it was. That's how I called three. And then I went to the 49 Gang and said, yeah, that's all you talked about. Luke was in the 49. Loved it. Loved it.  Everything you thought it was going to be? Yeah, I was down there. People I don't know. Just love and earth. I don't like being out here.  I wish I could call you. I wish I could call my nigga, fool. Yeah, because I hear you say that a lot.  He would say, see, I told you, I was telling the niggas, go sign them, bro.  Hey, look how they do you. Yeah, that's how I see you. I feel what he was saying.   That's what he said. My partner switched up. That's how he rapped about it. Everybody ain't your free. Yeah. You know what I'm saying? Yeah. But he always said it, though. Like, you can't be niggas to switch up on me or everything go bad. Or when they get to their lowest point. You know what I'm saying? Do you like when you see people remixing or redoing Mode 3's song? Because they've been different people remaking their song? The Durgies did. That's what I'm saying. Are you cool with it? Yeah, yeah, man. Sean Hummett. I like when niggas, you just see the other day, Dallas, Texas was in the building, and we wasn't even there. And they had to play Mode 3 where everybody was on stage just to get the crowd live. Wow. Beautiful. Beautiful. Beautiful. The other day, Regineet Lil Wayne Daughter, she was going hard. No, that's her Booster Daughter. Booster Daughter, sorry. She was going... No, it wasn't. Regineet? Regineet is Lil Wayne Daughter. Yeah, you're right. Yeah. I've been saying Booster Daughter so much freestyle in here. That's all I think about. No. Yeah, she was going hard to Mode 3's song. And some people were like, she should do a remake to that. Outside, would you think that would go hard? You said Lil Wayne Daughter, she be rapping like that? That's why I feel lucha girl. Yeah. Who was her mama? Tiny good friend. Yeah, the ones on the reality show. What's her name? I cannot remember her name.  Booster Daughter won't rap. That's why I said it. Booster Daughter been getting like, everywhere I look, I see his daughter. That's why I said that. She working. Booster Daughter making the girls like that stuff they ain't move. Yeah, that's the only one I see. I don't see no resonating, just taking up her dad. I ain't never seen her just rapping like that. She be taking cause everybody talk about it cause he be doing stuff that people don't understand.


So, welcome. Thanks for being here for my talk today. My name is Andrew Gerard. I'm a software engineer at GoDaddy. I've been with GoDaddy about four years. And today I'm going to talk about Gaskit, the framework maker. So, before GoDaddy was a technical artist in game development, as a tech artist, I would build tools and processes for artists to build the craft and integrate their assets into games. Now, as a software engineer at GoDaddy, I have a similar role, and that is to help build tools and processes for web developers. Now, GoDaddy's vision is to empower everyday entrepreneurs to build up their own businesses and establish an online presence. And GoDaddy is not just in the domains business. We have silver products. And for customers to build their businesses with, many of these products are in the form of customer-facing web apps. But we also have several internal-facing web apps for help developers, help our organization, and our customer care agents. Variety of different use cases. And so, we built something to help us develop all these apps, which is what I want to tell you about today. It's a really cool project. We're announcing and releasing today as open-source, which we call Gaskit. Now, before we get into the nuts and bolts of what Gaskit is, I want to lay some groundwork. And for the structure of the talk, I'm going to first describe the problem that we're going to answer with Gaskit today. And then point you to some ways you can use Gaskit yourselves and get involved with this new open-source project. Okay, so, what is a framework? Before we dive into it, let's consider what a framework is. According to Marion Webster, it's a basic conceptual structure as of ideas or a skeletal open work or structural frame. To summarize that for our purposes as software engineers, it can be said that frameworks provide a foundation for software developers to build applications in a streamlined way. Okay, so how are frameworks made? To start with, I just kind of want to see where you guys are at. Who has worked on frameworks before or actively builds them? Okay, and what about just Node.js apps, web apps, or otherwise? Okay, so let me make an argument here and kind of prove a point. If you've built an app before, have you taken that app and built another app from the same ideas or the same kind of code base you've done before? Okay, in general, you could consider, basically, you've made yourself a framework. And let me walk you through kind of this process and just to kind of see where I'm coming from here. Okay, so I'm a visual person. I put together some visuals to help illustrate the concepts I'm speaking about during this talk. So to start with, let's say we have a box. And this box represents our app. Okay, now we're going to build a front-end web app. And let's pick out some libraries we want to use. Okay, maybe we're using React for our renderer. Maybe we're using Webpack for our bundler, Express for our survey engine, so on and so forth. Okay, finally, we need to get all these integrated together. So we write some code, time all together, implement our app, and we'll say this is our app. Okay, now we've been tasked to build another app. Okay, instead of doing all this work again, probably what we'll do is just make a copy of that app and change up some of the application code and then we have another app. Okay, so we repeat this project in this process because we are, you know, app-making machines now. And, but let's look at some of the problems with this approach we've taken. Okay, say we find a bug over in this application, somewhere in the integration code, and say we make that fix. Now, ideally, we make that same fix across our other different apps that we have created. Okay, we go through and do that. And now it's kind of hard to see in my visuals where the changes were made and if I've missed an app. The same thing's true with our code in our real apps if this is the approach we take, going in and touching loose code within our apps to get these things work to fix, to make a bug fix. Another thing to kind of point out, it's hard to tell integration code and framework code from your application code. It's all living there in the same pool, the same mess. Okay, so let's look at a problem, a way to kind of solve this problem. What we can do is take our libraries that we've chosen and introduce a new framework package. Okay, this would be like a, you know, just a standalone NPM module, okay, that our app depends on all our libraries are part of this package, all our integration code lives in this package. So now we have a clear separation of where application code ends and where our framework code begins. Okay, and with this, we can, we can separate our framework from our application and it's much easier to spin up multiple applications using that same framework package. This time, if we find a bug in our integration code, it's just in that framework package, we make the fix and from there, we simply update our apps with that framework change and it's very clear which apps are on which version of the framework. Okay, so frameworks are useful in a variety of ways. What we've been talking about is, you know, centralizing our common code so we don't have it scattered through all our apps. And this, it also allows us to standardize what features and libraries go into our app. Okay, another benefit, it gives us a uniform way to develop our apps. We have a common patterns in place that we can, we can build from. And this ties into cross team collaboration. So, same team A is tied on a deadline and team B has some availability so they can send developer over to help out with team A. The developer of team B already knows the framework, already knows how the apps are built with the framework. It's very easy for him to onboard and help out with this other app. And of course, you can add to the drive principle. Don't try to solve the same problem multiple times. All right, so let me, let me tell you a little bit about how frameworks play a part at GoDaddy. But before I do that, let me, let me start with, back when I was a tech artist at a game studio. Okay, so as a, as an educational game company, we develop a pattern for assembling games quickly end to end. And part of that, which was my responsibility was to build a, a framework for a web-based game editor, which depending on the game, different game features could be tied into. So we had a web app in, say the, the blocks on the right represent different game features. Now, depending on the game, these features could be removed or replaced, depending on the needs. And we were able to iterate and build games much quicker this way. Okay, besides, besides the, the editor itself, you know, we had the, the, the game engine part and the server parts to, they all kind of followed the same principle. Okay, and so then one day my former manager, who I had worked with on this game development pattern called me up. He had left a while back and was now working at GoDaddy. And what he wanted to do is bring me on to help build a web app framework to tie different hosting products into. I think my first response to him was like, what? GoDaddy? What I want to order for GoDaddy? But after a while, one thing led to another and eventually came around to the idea. And GoDaddy's been great. I'm not building games anymore, but there's plenty of problems and challenges to solve, which makes the work interesting. And I get to work with a lot of really smart people. Some of them are in this room today. And when I started there, I was with my former boss, now my new boss, and we were in GoDaddy's hosting organization. Okay, GoDaddy has several hosting products and the web apps for these different products were scattered. The experience was scattered. They were built with different tech stacks. You know, teams weren't really communicating with each other. So it was just a bad experience for customers. Basically, they were all in different technology islands. And so what we wanted to do is try to break those down and have one pattern, one process, one framework to build our hosting web apps with. So what we did is similar to what I described before. We started with an app shell, built our framework package. GoDaddy was standardizing on React at this point. So React was one of the libraries we chose. And internally, we also had a team working on UX components with React. So we used that and helped contribute to that as well. We used Webpack for bundling. And as part of this framework, we had a way to tie in the different hosting products so they could develop their user experiences independently but still tie into this cohesive application. All right. So this worked well. And we soon had other apps besides this hosting app using it. Somewhere in internal facing. We had a couple customer facing ones as well. So eventually, our small team was moved out of the hosting org and rolled into is called App Services, which was provided services and support across GoDaddy. We were excited by this shift as our small team and eager to take our framework to other teams across GoDaddy to build their front-end web apps. But what we found is that other groups had done some other things, building their own frameworks for their own apps, okay? And this looks familiar, right? If you zoom out from just where we were at at hosting, all of GoDaddy was essentially on these different technology islands. Okay. So clearly what I've been describing, it's a real problem. Not just for GoDaddy, you know, ran it to this in the game industry. Imagine it's common to all companies, anybody that builds multiple apps with has multiple teams. Okay. Now, teams need frameworks to build their apps. Okay. And we just saw there's many benefits of doing so. So how are we going to handle this at GoDaddy? What did we do? What we did is identified the three most commonly used frameworks. And we took a few people from each of those teams and we formed a Tiger team within GoDaddy, cross-organization, just to kind of try to bridge that gap across organizations. This one, we decided to name our project Gaskit, because if you think about it, Gaskits are, you know, in plumbing and mechanical engines. They're what bridge the junctions or seal the junctions between pipes and fittings. And we thought as Gaskit is doing that for our libraries and our feature code. Okay. So we didn't just do this in isolation, just in this Tiger team. What we did is we started out with a request for comments process with proposals, gathered questions, gathered feedback from other developers who were going to be using this new framework. And, you know, ideas and opinions are like armpits. Everybody has more than one. They all stink, right? So we worked through that. We started deciding which frameworks to keep, which ones to not use, what features to use. And during this process is when we learned about Next.js. Now, Next.js is great. It took care of a lot of our goals. Tying React in with server rendering, with web pack bundling, and gave us a routing solution. And, but it didn't solve, it was one piece of the puzzle, but it didn't solve the whole thing. We still had to handle authentication, particularly to GoDaddy. We still had to tie in our UX platform, the UX components I was talking about. There were still several pieces that we needed. So we still needed to have this one GoDaddy framework thing, even if Next.js was just part of that. So once we decided all that, we started into the building the framework. Now, what Gaskit ended up being is not what you may have expected. It's not the teal rockster or green boxer. As we got started, some of our team wanted to implement a plug-in engine with a command line interface. Honestly, I was hesitant with this notion at first. We already had a pattern, like I just demonstrated visually, for building frameworks. Why do we need to do this different? Are we over engineering this whole thing? However, as we continued to work on it with our new cross-organization, Tiger team, it clicked. We weren't just building another framework. We were building the tools to actually build frameworks, and I will illustrate that shortly. So once we reached that and it just clicked, we knew we had to get this out to open source. This wasn't just solving a GoDaddy problem. This is a problem that other teams, other companies can make use of if we get this out to the open source world. So what is Gaskit? So the project turned out to be not just another framework, but a way to develop frameworks. There are some essential elements used to compose frameworks, and I will walk you through those next. Okay, so there's six key elements. The CLI, which has the plugin engine, plugins themselves, commands, life cycles, hooks, and presets. To start with, let's look at the CLI. This is the entry point into creating apps and interacting with apps. So you type Gaskit, this name of the CLI, and the first thing it does is loads plugins configured for the app, or if it's a new app, it has some built-in ones, built-in plugins. Plugins are the building blocks of an app framework. They provide the scaffolding, the circuitry, or what you use to integrate libraries, and they communicate together, which we will see in a little bit. Plugins also make the commands available to the CLI. You can use plugins to add commands to your CLI. In this case, in this little example, I'm going to show you the create command. Okay, so commands are the first argument to the CLI. When you run create, what it's going to do is fire off various life cycles. Okay, life cycles you can think of as the nervous system of your app. That's how different layers, different parts of your app communicate. These aren't your typical event emitters either. These can be executed in various ways, and they can be handled in order, okay? Very important, but what handles life cycles are hooks. Hooks also are made available by the plugins that you plug into your app, and hooks can also execute additional life cycles. Hooks are where you implement your integration code and your feature code that you want to use across your app. Okay, so this is kind of high level. Let me give you some concrete, little bit more concrete examples with the create command. We have a prompt life cycle that gets executed. Prompt, for example, when you're running running create, it allows plugins to ask the user questions. For example, when you're creating your app, what's the name of your app? Do you want a Git repo initialized with your app? Do you want a test suite installed with your app? Do you want to use Yarn or NPM? Things like that. Okay, after the prompt life cycle, after the all it's all gathered, then we enter the create life cycle. This allows plugins to set what files are going to be generated for the app. It allows them to say what dependencies they want to add to the package JSON file, other things along those lines. And then at the end, we have a post create life cycle. This gives the plugins the final layer to do any fine tuning to the app that as it's being created. For example, with the lint plugin, you can run eslint fix. It'll match up all the generated files to the lint code style that you've chosen with that plugin. Okay, so the last key element with gasket are presets. So presets are basically collections of plugins, additional configuration as you need. And these are loaded by the CLI, make plugins available. And basically presets become your framework. They're the chosen set of plugins or features that you wanna have in your apps. And you share presets across your apps, which I'll point out a little bit better shortly. Okay, so back to this example. Instead of now, depending on the Slart's framework package with our libraries integrated together, what you're gonna do with gasket instead is configure at your apps with plugins. Okay, plugins layer together and they can have dependencies on other plugins. And for example, here next depends on the webpack plugin. And I'll explain that a little bit later. But let's say, let's say for example, we're not just building a web app here with NICJS. Say we wanna build just a microservice or some kind of API, REST API. You can remove those other layers of plugins and just have HTTP with Express, okay? Plugins are also designed to be interchangeable. Say I don't wanna use Express. Say I wanna use Fastify, which was recently announced as part of OpenGS Foundation. You can do that, you can swap these out. And I could use Fastify back with NICJS and my webpack plugins, okay? So plugins can be interchangeable. And besides just that, think about what if, go to as a React shop, that's fine, that's great. But as we open sources, we expect to see things like maybe a Svelte plugin, maybe a Rollup plugin. We're not tied into one particular bundle, one particular renderer, or a compiler, whatever you wanna refer to it as. So besides plugins for, well, let me take a step back here, sorry. Let's go back to GoDaddy's current tech stack. So we have Express, Next, Webpack, Redux. This is what most of our apps are using right now. These are library plugins. You guys know these names, but as I mentioned before, we had internal needs as well, our auth, our UX. What we have is internal plugins for those as well, okay? So plugins aren't necessarily just for tying in a library that you wanna use from the open source world into your app. You can build your own plugins for your teams, for your companies, and integrate them with the Gaskit setup. Okay, so when teams have settled on what features they wanna have in their apps, what you would do is stamp those into a preset. So now whenever I go to create a new app, I would say, okay, I wanna do Gaskit Create with the GoDaddy preset. That's how we spin up apps at GoDaddy now with that. Pre-sets can also represent smaller sets of plugins that make sense together. So for example, if there is a Next.js preset, which we have in our open source packages right now, so you guys can kick the tires on Gaskit quickly. And so we have a preset for just progressive web apps, the different plugins we need for that. Those are available. Apps can be composed of presets, like I'm depending on two here, and presets can also be extended. So if your team wants to use the Next preset and they wanna use the progressive web app preset, you introduce some other plugins for your own teams, your own companies, you can do that and have a higher level grouping of presets. Okay, and so as you can see here, what was once a framework package that could not be changed, could not be played around with, experimented with, you know, trying out Fastify, instead of Express, you can now with Gaskit piecemeal these together and build your frameworks in the form of presets. Okay, so this is probably a question you're thinking right now. Is this just another app generator? Is this like, you know, besides, is this more like Yaman or something, Yaman? The answer is no. Gaskit is also used for runtime integrations in your app as well. We've been talking about how you create your app, but let's look at some examples of how you use the Gaskit life cycles during your app or when your app starts. So we're gonna look at the start command and let's walk through this now. So we have the Gaskit CLI. In a context of our app, it's going to load plugins and we'll say the start plugin is made available. Start plugin gives us the start command. When I execute the start command, it's going to fire off the first life cycle, which is the start life cycle, okay? Next, the HTTP plugin hooks the start life cycle and it executes a create servers life cycle which allows plugins to say, okay, this is what I want to go into the server that's created. In our case here with that GoDaddy stack I showed you, we have express, okay? Express hooks it, express says I want to be the handler for the server and as you know, express can be used with middleware and you can set up your routes and one up for it. So the express plugin executes a middleware life cycle allowing other plugins to attach middleware and also executes an express life cycle allowing the instance to be manipulated add your routes here, things like that. The next GS plugin then hooks the express life cycle and it sets up the routes for the pages of your next app, okay? This plugin then initializes Webpack which is hooked by the Webpack plugin, okay? When you do that, that allows other plugins to either use the Webpack chain life cycle to assemble Webpack chain or Webpack in a chainable way and there's also another Webpack life cycle allowing plugins to return Webpack partials that get merged in or mutate the Webpack config at that point and again, these life cycle were ordered. I'm not showing all the nuances of how you can make use of these, we're just kind of going through the initial parts here. Okay, so once the next JS plugin has gotten its Webpack config, it then executes the next config life cycle. This allows you or your plugins to manipulate the next config, use some other configuration plugins like Next SAS or Next SCSS, that kind of stuff, or CSS. And so that's an example of a flow with the start command. There's several more life cycles you can make use of in your apps. As you add plugins, you can add your own life cycles and you can create your own commands, okay? We've been talking about start, there's other commands available and again, you can build your own. You can see what's available today if you go to our Gaskit Devs doc site. And speaking of docs, let's talk about that. So the key aspect of any good framework is this documentation. You want developers to use your framework, not get lost in the code, trying to figure it out. Your documentation should be clear. And since Gaskit allows you to build your frameworks in the form of these plugins, in the form of these little individual components that you compose together, how are you gonna present docs for your apps for this? What we've introduced with Gaskit is a docs plugin. Now the docs plugin makes available a docs command. So when you run this command, what it will do is collate all the readme files, all the documentation files of the plugins installed for your app, put those in a central place, fix up the links between readme's and there's also a docsify plugin which will then give you a nice web view of your documentation. So this would be the documentation for only the plugins and presets and what's available in the app, not just not the whole ecosystem. So it's pretty cool. If you guys have played around with Rust, this is kind of like cargo docs, it just gives you the documentation for what's in that app that you're working on. Okay, so who is Gaskit for? Obviously it's for developers. If you're an app developer, you can use Gaskit to get at the life cycles, integrate your own features, tie in with other plugins. It's also for teams. Okay, if you're building multiple apps, you have multiple teams working on these apps coming down with a tech stack you're happy with, a pattern of development you're happy with, put those into a preset, share those across your team and you're good to go. Gaskit's also important for communities. I mentioned Next.js, I threw out Svelte. Any of these kind of communities that the build up libraries, they want their libraries to be able to interact with other libraries out there. If they're in the form of a Gaskit plugin, it makes it easy for app developers, for teams to try those libraries out in the context of their app and their context of what they want to use for a framework. Okay, so next question, how do I get started? So to get familiar with Gaskit, the Gaskit project and what's available today, invite you to visit our website, Gaskit.dev. This is a docsify site using GitHub Pages generated with the Gaskit docs command, okay? So you can kind of get a feel of how that works. We have a nice splash screen on the front, but it'll give you an idea there. And the best way to get to try it out is to kick the tires with it. You can install the Gaskit CLI today. We just pushed that to npm last night. So give it a run. The help command will show you what you can do with the different commands. And so just as a quick recap, developers need frameworks to build our apps effectively and quickly, right? Gaskit provides a tooling to build fully-featured frameworks, docs, starting an app, not just creating an app, okay? And the Gaskit ecosystem, it's ready to grow with your contributions to the open source world. Help us out, join in to the fun and let's make Gaskit a real thing, not just for GoDaddy, but for everybody out there. And if you have any questions, you can grab me on the hallways or hit me up. My name's on Twitter, it's CanetteFX. I didn't put it on the slide, but just fire me or when I let her go to GoDaddy guys and we can get you to go on. So thanks.


Grafwyd i'n ddigwydd yr unig. A ddilyn i chi'n f Churchill yn enwedig y gallwn ymddangos gyda chi. Mae'n fydig i fi gaf ar hon i. Mae'n ddigwydd i chi'n ddigwydd i chi'n ddigwydd ar y prosiect i'r hyfforddiad, ac dyna i'r ei ddweud ei gwybwch yn ymddangos ythafell ar roeddaeth. Mae'n ddigwydd i chi'n ddigwydd i chi weld ei gwybwch ar eich ddweud eich ddweud felly i chi inverwyddol yn chynwyd yn Cynllun. A ti'n gwneud yn yw'r hollwch yn eu bodysig ar y cyhoeddiad. I was an official in Beijing at the British Embassy in 2001 and I remember at that time China was just finalising its negotiations to join the World Trade Organization after 14, 15 years of long, long debate and kind of very, very complicated negotiations with the US and then with the EU. And it's sort of interesting to think that's 10 years, you know, November, I think was the November, the beginning of December was when it was finalised, what our assessment was at that time and what's actually happened in that 10 years. In fact, I was looking at the Economist and other newspapers in 2001 the other day and they were surprisingly gloomy, sort of saying China's going to open up its domestic industries to a lot of very fierce competition. Its agricultural sector, which was after all, nearly a quarter of its GDP then, was going to be very fundamentally challenged by the liberalisation of tariffs and the opening up of the sort of domestic market. And, you know, the assessments were in the long term optimistic, but thinking that in China would be really kind of, you know, challenged and in some ways would probably come out of this maybe a little worse off than it expected, the political objective to join the WTO. Was clear that China would be part of the global economic and eventually political community, but certainly the economic kind of gains were more difficult to sort of re-fortell. Well, we're 10 years on from there and I think we can say that what 2001 did do, which we didn't expect so profoundly was to unleash forces of productivity so that we stand now with China, the world's biggest importer and exporter, the world's second biggest economy, the world's biggest holder of foreign reserves and a whole sort of list of things, you know, if it's not number one, it's number two or number three. So this has been quite an extraordinary transformation. China has become more quickly than I think we expected and as official I didn't expect this so quickly, more successfully than we probably expected this enormous economy. Since 2001 it's tripled. Maybe quadrupled the size of its economy when you think of the kind of immense sort of factory like growth of its GDP. This is an extraordinary thing, but it's also for its leadership, the elite leadership who are now going to go through a transition over the next 12 months to a fifth generation leadership. It has also created some profound socio-economic, socio-political challenges from, you could say from 1949 when the Communist Party was victorious in the civil war until 1978 during the period of Maoism, state-directed economy, kind of borrowed from the Soviet Union, kind of era, I suppose of, you know, really the key thing was to sort of stabilize society but to do it through these enormous campaigns like the Great Leap Forward and the Cultural Revolution. And these had huge social costs, huge social costs. The country was united, that's true, however the costs were immense. From 1978 to 90s till today you could say that the one thing that the elite leadership have said and the ministries under them have said is, you know, you take economic production as the key thing. It said all the congresses, it was said by Hu Jindhal in 2007, it said during the National People's Congress, this is the one thing that every one kind of agrees with. Economic productivity is the key thing, this is where we have performed, I mean the kind of performative legitimacy of the party. But really in the last couple of years more strongly, particularly people like Wenja Baill, the current Premier, you see this kind of talk of we need to think much more about socio-political outcomes, how to create more justice in society, how to have more balance, how to deal with equality, these kind of things because it is a very unequal society at the moment, although there is huge, you know, kind of productivity and prosperity. So this is the kind of policy advice that we are giving, the context China is undertaking enormously challenging transitional decisions. It is taking them with a new leadership, it is taking them at a time when it is globally more prominent than it has ever been before, in a way more quickly than it thought it would have to take it. And the whole idea of setting up this academic network is because of course we need to be part of that. China's internal issues are in fact global ones, what happens in its 31 provinces and autonomous regions are things that affect us. If it has problems with its science supply chain, well it's a big exporter, it absolutely impacts on us. And so really we are trying to gather as much expertise on as many areas as possible throughout Europe to make sure that our policy makers in the European External Action Service and the member states have policy which is informed by good analysis, by good empirical studies and by knowledge. I mean policy informed by knowledge is obviously probably more successful than policy informed by wishful thinking. Basically to get involved, I mean just to sort of explain a little bit about the project, it's funded obviously by the European Union, we started work in January this year, so only nine months old. And as I've just said the key thing that we want to do is to have European policy makers make available to them the best kind of analysis about the political, economic and social issues in China at the moment. The consortium that we're involved with, Steinbeis in Germany, the Galway Development Service International who are here today, the University of Nottingham and Chatham House, the Royal Institute of International Affairs in London. We have the key areas that we focus on are economics, politics and society. The three things that we really do, it's actually put up there as four, but I mean really the three things that we do as part of our fundamental job are to do short briefs on a number of issues, we've done them on international affairs for China, we've done them on economic issues, we've done them on current internal issues in China like social protest, these kinds of things. These are delivered to the Commission every month, really analysing by a key expert what is happening and these experts are any of our 250 network at the moment across Europe. The second thing we do in fact Jeremy and Henric today are doing this at the moment, we are working on long papers so this year they'll be published on our website but we're doing papers on Chinese investment into the EU, Chinese investment into the greater European area which is largely Russian Turkey. Chinese EU relations where they'll be by 2020, China and the US and the EU, these papers we publicly publish, we publish commissioning bids so people can bid for them, so this is a very good way for people to become involved. And then basically the final thing we do is events, events like the event that you are at today. The easiest way to get involved is through our website, there's a kind of form there that people fill in and it's a rather bureaucratic way but I mean I think it means that you are then part of our network, it's an inclusive network, we want to involve as many people as possible across the member states and it sets out very clearly on our website what kind of things we're doing.  Today's sort of objective really, first of all it's great to be able to continue this relationship with the IEA in Dublin, it's fantastic, your support has really been appreciated. And the second thing really is to sort of give a taste of the sort of research that we've been commissioning and that Jeremy and Henry will do to sort of really show you the kind of things we're looking at, the fresh research we're doing. And the sort of third thing is really to create a dialogue to see what one of the key member states in the European Union, the kind of expertise here, the interest in China here would be. And just finally before we kick off, I think there's one statistic that I think always kind of stays with me, my former boss in Beijing, the British ambassador there in I think 2002, I remember when he arrived at the embassy he sort of made this talk where he said the first time he'd come to China was in 1971 and he said on that day the only way that you could enter China as a European was through Hong Kong into what became Shenzhen but was at that time a small fishing village. Now it's a city of 10 million people and that day the only people that entered China, all of China from Europe was three people. Between 1949 and 1978, according to the National Bureau of Statistics, there were something like 750,000 people movements between China and the outside world. People leaving and coming back, people visiting and departing from that whole of that time, nearly three decades, only 750,000. The last year that I have statistics for in 2006, 46 million in one year. So you can see there the kind of incredible increase, the fact that we do have to have our kind of knowledge used, we do have to be aware of this sort of enormous transformation that is happening with China becoming more and more prominent. We need to embrace that and to be able to have a strategy as I think we were talking about earlier, a strategy to deal with it, to work together to find areas of common interest. The areas where obviously we disagree but these are natural things in any dialogue but we really want to make sure that our policy makers who after all have really opened their doors to this project are given the best possible advice and the best possible analysis so that they can then do something with it.


sometimes you just have to wait for big things to find you instead of you trying to find them serendipity means to find something better by accident than what you were looking for on purpose allow for serendipity in your life today


And here we go. Here we go. All right, just diving right into the studio today I filmed like a couple clips in the gym But there's only so much cross-training that I can film and it was a harder day mentally in the gym I'm just you know being transparent the highs and the lows on this daily vlog one second. I'm a little thirsty. Hold on Basically I've been Striving today to set up an MRI.  We're making progress though. So Saturday morning 8 30 a.m. My time I'll be getting pictures taken on my foot for an MRI and we'll be able to get a little more information in the reason I didn't think of this 10 days ago I should have thought of this but the Cleveland plane tickets are purchased already and so if I know it's a stress Fracture we can basically cancel our plane tickets immediately and Move on to plan B plan C and so forth therefore a I hadn't I didn't even think of that 10 days ago So anyway, the doctor said okay, we'll get you an MRI as soon as possible So that's happening and today we are diving into your running questions That's right if you haven't connected yet on Strava or on Instagram Both of the links are down below those are probably the two best places to connect with me I also am very active on Twitter Anyway, so you can send me questions through Instagram and Strava And I will do my best to answer in a timely manner You can also email me, but the emails get they get jumbled with all the other emails So anyway, all right moving on to the hoca carbon X. That's right You probably wondered why that is in the title of this vlog basically tomorrow Saturday May 4th Hoka is turning 10 years old. I do believe that's what I read on the website. They're 10 year anniversary Therefore they're launching a new shoe called the hoca carbon X a new carbon fiber plate shoe from hoca So you guys know you've seen me talk about the hoca carbon rocket go check out that full review upper right hand corner This is a 1 millimeter drop shoe right here and more of a racing shoe I would say 10k maybe a 10 miler maybe half marathon although I know a lot of people will use this for the marathon distance as well and Basically with some stats on the hoca carbon X brand new running shoe. It's just under 9 ounces 250 grams. I don't own it yet. I haven't even seen it in person But these are stats that I'm reading on the website. It's got a 32 millimeter stack height in the heel 27 millimeter in the forefoot so a 5 millimeter drop. So that's kind of interesting This is a carbon fiber plate shoe as well the first from hoca And so now the carbon X is the second carbon fiber plate shoe from hoca Fascinating to see them really push forward. So it's actually so on on the side of Nike You've got the vapor fly 4% flying it you've got the zoom fly flying it and then you now you have the the Nike Next percent all these names the Nike next percent flying it So Nike now has gosh three carbon fiber plate shoes and hoca has two So bottom line is the races on in the kite carbon fiber plate running shoe lineups And in addition the new hoca carbon X is gonna cost $180 so they're not giving it away. That is for sure. Moving on to your questions here today. What are we doing? I'm answering your questions again. You can send them to me through Instagram and Strava. Here we go Do you so this is from Mark? He asked this do you recommend the Nike win-flow 5? And also he's asking about the new balance 1080 v9, which is better So definitely and I already replied to mark mark definitely the new balance 1080 v9 Actually, I'm very I'm I'm interested in the 1080 very interested in this ninth iteration I might be picking that up sooner rather than later I think it could be used for a long-run shoe the win-flow 5 I would put more in the category of a cross training shoe. So maybe I need to pick it up as well It's just not it's it doesn't get rave reviews for running It's more I would put it more in the cross training category But if you're really looking for a really affordable Nike shoe that could you could put some minimal mileage in Yeah, you could probably get the win-flow 5. Okay moving on to the next Question this is from Manash in India. He asks hi set. How's your foot doing? It's doing okay I'll I'll just I'll just answer that way. I hope it's recovering well and fast and want to see you lining up for Cleveland Thank You Manash. He also asked wanted to know which shoe for a neutral Would you suggest for long runs of 18 to 22 miles? He's 58 59 kilograms I don't know what that is exactly in pounds And he's his tempo pace is 355 per kilometer for the marathon Just to specify a little bit about himself. So thank you Manash for that question So I have some shoes here that I've kind of written down Basically, of course the Pegasus 35 turbo is an easy answer. I it's a neutral shoe It's got the zoom X foam very comfortable. I would I would say It's not my it wouldn't be my first choice for a long-run shoe, but it will do the trick I think you can use the Pegasus 35 turbo for Tempo days because it is it's got that tempo feel because of that zoom X foam through the midsole So anyway, that's one shoe the Sockney ride ISO lineup would be another one the Brooks Adrenaline GTS 19, but it is stability. So I know I forgot that you're actually looking for a neutral shoe So that's more stability. So cross that one off and then the new balance 1080 v9 that I already mentioned I would put that one out there as well for you And then lastly I struggled with the Vemero 14 Where is it with the Vemero 14 from Nike because of the lacing cutting into the top of my foot right here? You can go watch my full review of the Vemero 14 upper right hand corner So I struggled with the shoe, but I do love the ride of the Vemero 14 for a long run I Don't know if I'm gonna give this shoe another shot Probably not I want to though so bad because I do like the ride So make sure Manash that you don't have any issues with the lacing through the top of your foot So those are some ideas for you for a long-run day I'm trying to think if there'd be any others that I have out here. Actually, I'll just put it out there Yeah, the Skechers razor 3 you could use this for a long run I would put this more in the in the I would put this more in the 12 to 15 mile range, but it's very lightweight Definitely a neutral shoe Not a lot of arch support kind of a bare minimum if you know that you can stay healthy And you want to save a little money. I would say the Skechers razor 3 could be an option for you I actually like this shoe a lot It's it's got some I would say it's got some durability Question marks like the outsole is definitely wearing down for me already But anyway, hopefully that helps you get going in the right direction Manash. Okay moving on to question number three This is from do you even avocado? I love it. I think this was from Instagram. He said hey, Seth I've been watching your YouTube videos and have a question. I hope you can help me with I get sore stiff joints and Overpronate slightly. I just started running 5k's four times a week and might want to go further in the future What shoe should I get? I have a stability trainer, but find it quite hard So he runs in the Nike structure 21 was thinking of a more cushion shoe would be better And that is again from do you even avocado? Thank you for the question. So I threw out the new balance vongo I've tried the vongo. I should also mention. I haven't tried all these shoes I always say too many shoes too little time like there's only so many shoes I can try but I have tried the vongo on in the store and I liked it a lot I don't own it yet. Maybe I will at some point, but it is structure I'm more of a neutral running shoe guys. So but I like the ride of the new balance vongo and then also again the Brooks adrenaline GTS 19 that could be an option for you and then also from hoca the gaviota and Be the hoca bond I six both stability shoes So the gaviota will have less Midsole in the bond I six will have a lot of plush If you want more cushion the bond I six will have plenty of plush cushion for you through that midsole The gaviota is less from hoca But still a stability shoe from hoca and then lastly I wrote down the soccany omni ISO 2 Which has a little more cushion than the Liberty ISO 2 both stabilized shoes from soccany that again I've held the Liberty in store and it felt good, but I'm again I'm more of a neutral guy, so I don't have stability shoes in my lineup as much But those are some options for you to consider Do you even avocado one more drink here one second? Okay moving on to question number four from the bro Ski, I'm a sub on your channel, and I have seen some of your videos on injury and good shoes I'm having some problems with my heels To my Achilles tendon, and I was looking for some good shoes for walking. That's really important actually It's a good point like we runners we think about shoes while we're running But don't forget about taking care of your feet and your legs and your body when you're just walking around the other You know 10 hours of the day or 12 hours of the day or however long you know, you know You're awake so and that goes for really like shoes that you wear to work as well Like if you have to wear dress shoes every day might be something to consider To make sure you're not wearing dress shoes that are messing up your feet too too much So good point broski and then he goes on to say do you have any suggestions that would help? So I wrote down of course the shoe that I have on one shoe that I have on right now I don't think I have it.  It's the ultra Torin 3.5 I love the Torin lineup from ultra because it stretches out my Achilles and my soleus and my calf muscle When I'm just walking around because it's a zero drop shoe and I just love Ultras EVA. I here's what they have through the midsole. They have the ultra light EVA a bound top layer midsole I don't know what it is But for some reason the midsole for ultra even though it's just EVA It feels really nice And I don't know if that's just the density that they're creating the shoe with but I I love Walking around in my ultra Torin 3.5 just so you know That's kind of my go-to walk-around shoe if it's not that then it's probably Well, no, it's the Torin 3 or it's probably my Hoka Recovery sliders those sandals that you see me in quite a bit, but I'm also I will say right now I'm pretty intrigued by the ultra paradigm for a shoe from ultra It's a road shoe that has a little more midsole than the Torin So a little more stack height so more cushion as a as I'm dealing with this injury And I'm already plotting for the future. How can I stay healthy in the future while still keeping my volume pretty high? On easy days and maybe middle distance days. I'm actually I'm really considering purchasing the ultra paradigm for For those easier days Middle distance days not long run, but middle distance days for me. So keep stay tuned There's a good chance. I will be picking up the ultra paradigm 5 moving forward. Okay next question I believe this is number five from Evan. Hey, Seth. Love your channel. What are your thoughts for the carbon rocket for a 10 mile race? I've only had a chance to get two runs in and they feel smooth at 545 pace, but They feel smooth at 545 pace, but really stiff first time with a carbon fiber plate and he's a little nervous Evan Thank you for that question. So here you go. This is the carbon rocket If again did I already mention upper right hand corner for this full review of the carbon rocket? I agree very smooth I'm stiff. Yeah, I could see you. I could see how you wouldn't be making that assessment Evan Definitely not as soft through the let's say, you know compared to the vapor fly. It's definitely not zoom X foam It's an EVA foam through that midsole for Hoka And they have a little bit of hard rubber here in the forefoot and the heel which also adds to that stiffness Evan So I think you can I wrote back to Evan and said you could definitely use The carbon rocket for a 10 mile race and Evan I would agree with you about being a little nervous about running in a carbon fiber plate shoe Too often my thesis is that in my training. I want to run in carbon fiber plates Once a month twice a month basically for hard threshold efforts That's how I plan to use the zoom fly flying it moving forward potentially the carbon rocket Maybe the Hoka carbon X at some point, you know, some people train All it seems like it's crazy, but some people train in the vapor fly 4% flying it every day It's insane now They have a lot of money and they can afford to buy like eight pairs of vapor flies So I don't know though I'm of the opinion that I like to train in shoes that are gonna make me work a little harder Meaning the weight is a little heavier Doesn't have a carbon fiber plate in the shoe because then then when you put on a carbon fiber plate shoe You're crushing it.  I have a little help here I've been training in a shoe that is heavier doesn't have a carbon fiber plate So anyway, Evan, that is my thesis when it comes to carbon fiber plates and there you have it I could talk about running shoes all night, but I'm gonna call it their keyword answers I hope I provided a little bit of insight and some answers for you about running shoes and listen Everyone's foot is different. Everyone's gate cycle is different So you just got to get the shoe on your feet and go run. It's that simple and see how it feels But I do hope that my thoughts help at least narrow down your selection a little bit Right, there's just so many to choose from it It can be really overwhelming when you walk into a running shoe store So anyway, I hope that gives you some insights in question of the day if there was one and I'm putting you in a corner here If there was one feature of a running shoe that you had to choose that made you purchase that shoe What would it be? So we're talking about grip. We're talking about drop. We're talking about comfort. We're talking about Midsole we're talking about the lacing system We're talking about the tongue any feature of a running shoe and I think really soon I'm gonna make a video about the anatomy of a running shoe just to help you all learn a little bit more about running shoes So anyway, if there was one feature of a running shoe that you had to choose for your purchase Like that is what pushed you over the edge for like, okay I'm gonna buy that shoe because of the grip in the outsole. What would it be? Thanks for hitting it up down below and thanks for bearing with me I'm gonna try to keep doing this daily vlog as long as you keep watching but again It's getting it's you know, it's gonna be difficult moving forward without being able to go out and run in film But if you stick with me, I'll stick with you. It's just like oh today was a hard day like oh just trying to figure out what to film and Being mentally tough in that gym on the stationary bike But I know you got my back and I appreciate it. So you better believe it I will be back tomorrow. Yeah, no matter what it takes, right? No matter what it takes seek beauty work hard We got this oh up here. It's all it's right there. It really is it's crazy today was a hard day