Under normal circumstances, the profit of an enterprise's main business should be the most important part of its total profit, accounting for the highest proportion, while the profits of other businesses, investment income and non-operating income and expenditure should not be relatively high. If something unusual happens, more analysis and research are needed.
Because the profit of main business is not deducted from sales expenses, management expenses, financial expenses and other period expenses, it cannot fully reflect the profitability of the company's main business, but is affected by the changes of main business costs and taxes, sales unit price and sales volume. However, in most cases, the main business profit is the main component of operating profit.
A more useful indicator to grasp the profitability of a company is the profit rate of its main business. By comparing the profit rate of the company's main business vertically, we can see the changing trend of the company's profit; Compared with other enterprises in the same industry, we can see the relative profitability of the company.
The main business profit is calculated by subtracting the main business cost from the main business income, and then subtracting the main business tax and surcharge, so the figure is the main business profit. Profits from main business are generally the main source of enterprise income.
The calculation of the main business profit is directly related to the final income of the enterprise and the payment of taxes and fees, so the income in this area must be calculated clearly.