Analyzing a company's financial performance helps improve its financial health and make better decisions. The way profit is calculated can affect how stable a company appears, even if it's making money. A new model for analyzing profit factors considers both variable and fixed costs, leading to more accurate financial assessments. The current rules for income accounting can distort a company's true financial performance. By separating fixed and variable costs and using budgeting, companies can make more informed decisions. This new profit analysis method may be complex, but it provides clearer insights for strategic financial planning.