Financial Indicators Of The Publishing Business Conditions

In over twenty years of practice of the open-door policy, with the foundation and continuous improvement of socialist market economy system, China's news and publishing industry has broken through the traditional planning economy pattern and headed toward market economy. The rapid development and continuing expansion of news and publishing industry call for higher quality of financial analysis. The analysis and research in this article is just an exploratory attempt in financial analysis of publishing houses. The purpose of this article is to generalize the rule of the comprehensive measurement of financial data to the operating status of publishing houses, through the analysis of solvency, managerial efficiency and profitability. We can use this rule to build correlations between each individual number, foresee the general trend of the development of publishing businesses and provide straightforward and comparable reference data for decision makers in formulating or modifying business strategy. The research method is to study the characteristics among several financial indexes using multiple regression approach, use regression equation to describe the rule that dependent variables change with other financial indexes, and then conduct significance testing to the regression equation and regression coefficient, hypothesis testing to the regression equation, etc. to test that the regression equation is generally regressive. The conclusion is that the equation obtained through multiple regression analysis is a mathematical model that considers both solvency and managerial efficiency, and reflects profitability of publishing houses. The equation is generally regressive. Future profit of publishing houses can be forecasted using the multiple regression equation put forward in the article. The article consists of four parts. The first part introduces the publishing industry and requirements of financial management by publishing enterprises. The second part uses simple financial index to explain and analyse the operating status in terms of solvency, managerial efficiency and profitability. The third part uses statistical regression approach to study the comprehensive measurement of financial indexes to the operating status of publishing houses, get regression equation, and conduct statistical testing to the practicability of the equation. The last part is the conclusion and limitations of this research.