It is possible that the source of profit is not the profit of the main business, but the accidental situation of relying on other business income or investment income, which is unsustainable. For example, when the stock market is good, many enterprises use funds to buy stocks, and the income is very high, but this is not the profit brought by the daily operation of the enterprise, and does not represent the profitability of the core business of the enterprise.
Of course, the specific situation needs specific analysis, and it is necessary to understand the specific situation of the enterprise in order to have a more detailed analysis.
Extended data:
First of all, profits reflect the profitability of enterprises. The profits of some enterprises cannot be reflected in the company's accounts. Therefore, when looking at the financial report of an enterprise, we should not only look at the reasons of the income statement, but also look at it together with the balance sheet, income statement and cash flow statement, which can confirm each other.
Second, the income statement itemizes all kinds of income, expenses and losses corresponding to all kinds of income obtained by enterprises from selling goods, providing services and investing abroad in a certain accounting period, and compares the income with expenses and losses to form the current net profit. This process of comparing income with related expenses and losses to generate net profit is called matching in accounting. Its purpose is to measure the achievements made by an enterprise in a specific period or in a specific business, as well as the price paid for these achievements, and to provide data for assessing the operating benefits and effects. If the main business income is listed and compared with the main business cost, main business tax and surcharge respectively, the main business profit can be obtained, so as to grasp the results of the main business activities of the enterprise. Proportion is an important accounting principle, which is fully reflected in the income statement.
Three, usually, the income statement mainly reflects the following aspects:
(1) Various elements that make up the profit of the main business. Starting from the main business income, after deducting the relevant expenses and taxes incurred to obtain the main business income, the main business profit is obtained.
(2) Elements of operating profit. Operating profit is based on the main business profit, plus other business profits, minus sales expenses, management expenses and financial expenses.
(3) the elements that constitute the total profit (or total loss). Total profit (or total loss) is obtained by adding (subtracting) investment income (loss), subsidy income and non-operating income and expenditure on the basis of operating profit.
(4) Elements that constitute net profit (or net loss). Based on the total profit (or total loss), net profit (or net loss) is obtained after deducting the income tax expenses included in the current profit and loss.
In the income statement, enterprises are usually listed by income, expenses and various items that constitute profits. That is, income is listed by importance, mainly including main business income, other business income, investment income, subsidy income and non-operating income; The expenses listed by nature mainly include main business costs, main business taxes and surcharges, operating expenses, management expenses, financial expenses, other business expenses, non-operating expenses, income tax, etc. Profits are classified and itemized according to the composition of operating profit, total profit and net profit.