Analysis Of The Profit Quality Of Huayi Brothers Media Co,Ltd.

In recent years,China's capital market and listed companies play an important role in China's economic development,and their growing scale has also attracted more investors.The profit information in the statement of the listed company is the most concerned by the investors,but in recent years,the false events of the statement information are frequent at home and abroad,which damage the interests of the investors.It is one of the urgent problems to be solved in the healthy and stable development of China's capital market to analyze the real profit quality of listed companies in order to protect the related interests of investors.This paper chooses Huayi brothers,a film and Television Industry Company,as the research object and uses principal component analysis and financial index analysis to study the profit quality.Firstly,this paper introduces the background of the research on earnings quality of film and Television Industry,summarizes and comments the literature about earnings quality at home and abroad,and then introduces the related concepts and influencing factors of earnings quality.In this paper,we choose 12 financial indicators to establish the comprehensive evaluation system of the profit quality of the film and Television Industry,starting from the four dimensions of the profit quality evaluation,namely,the ability to make profits,the returnability,the stability and the growth The principal component analysis is used to analyze the earnings quality of 15 listed film and television companies from 2015 to 2017.In the fourth chapter,combined with the comprehensive evaluation system of earnings quality,Huayi brothers financial data since its listing in 2009 are selected to carry out specific case analysis.It is found that non-recurring items account for a high proportion,goodwill assets are risky,profit content is low,profitability is poor,profit quality is not optimistic.This paper puts forward some suggestions to improve the earnings quality of Huayi brothers,such as returning to the main industry of film and television,increase the proportion of recurring profit and loss in the composition of profits,and controlling the risk of goodwill assets.Finally,combined with the results of the analysis,the film and television industry should be based on the industry's financial characteristics to establish a comprehensive evaluation system,improve core business competitiveness and other enlightenment.