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Analysis of the Corporate Profit Model behind Financial Statements

Author(s)

Jing Yu

Affiliation(s)

Department of Accounting, School of Business, Zhejiang Wanli University, Ningbo, China *Corresponding Author

Abstract

In modern enterprise management, financial statements, as a direct reflection of an enterprise's economic activities, are not only an important basis for external stakeholders such as investors and creditors to assess the enterprise's value, but also a key tool for internal managers to understand the business situation and make strategic decisions. An in-depth analysis of the enterprise's profit model behind financial statements is of great significance for understanding how enterprises create value, identifying profit drivers, and predicting future development trends. This article will start from the basic composition of financial statements and explore how to reveal the profit model of an enterprise by analyzing the balance sheet, income statement and cash flow statement.

Keywords

Financial Statements; Profit Model; Balance Sheet; Income Statement; Cash Flow Statement

References

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