It shows that the total scale and level of industrial production of industrial enterprises reflect the total production results, but it cannot explain the business situation and economic benefits of enterprises. Whether enterprises increase their income mainly depends on the growth of total profits.
Total profit refers to the profits realized by the enterprise during the reporting period (losses are filled with "-"). It reflects the benefits of all aspects of the enterprise's production and operation activities and is the final financial achievement of the enterprise.
As producers and operators of commodities, enterprises can only speed up capital turnover and improve their own economic benefits by providing their own products to the society.
If a lot of products are produced, but few are sold, it is difficult to increase income. If all products are produced and sold, the cost is too high and the profit rate is very low, even if they are sold at a loss, they will not increase their income or even cause losses. Therefore, during the reporting period, the total industrial output value of enterprises increased, and the total profit did not necessarily increase or did not necessarily increase simultaneously.
Extended data:
Three basic principles should be followed in calculating the total industrial output value:
1, the principle of industrial production
That is, all qualified products produced by the enterprise during the reporting period, regardless of whether they are sold during the reporting period, should be included. On the contrary, products not produced by this enterprise are not included in the total industrial output value of this enterprise.
2, the principle of the final product
That is, all products included in the total industrial output value must be the final products produced by the enterprise, which are qualified after inspection and do not need further processing. If an enterprise has intermediate products (semi-finished products) for foreign sales, then the intermediate products sold abroad should also be regarded as the final products of the enterprise.
3, the principle of factory law
That is, the total industrial output value is based on industrial enterprises, that is, the total industrial output value is calculated according to the final products of enterprises. The gross industrial output value calculated by this method is not allowed to be calculated repeatedly within enterprises, but it is allowed to be calculated repeatedly between enterprises.
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