Analysis On Film And Television IndustryProfit Quality Of China Listed Companies

With the development of economic globalization and the reform and opening up of China, people’s spiritual and cultural demands is increasing day by day. This promoted the rapid development of the film and television industry in China. At the same time, the upgrade of consumption structure provides a good opportunity for the development of film and television industry. Consumers pay more attention to the spirit of the product and their cultural values, increasing market demands of film and television industry listed companies. Profit is the ultimate goal of enterprise management. Comprehensive and reasonable evaluation of film and television listed companies’ profits quality can help people make correct investment decision. What’s more, it also can help managers find problems existing in the financial and operating activities. Then we can put forward some suggestions to solve the problems and help enterprises increase profits, reduce risk and improve the overall level of profitability. This paper introduces current condition of film and television industry firstly. Based on this find the financial characteristics of this industry listed companies. According to these characteristics, combined with the knowledge of accounting and financial management constructed an evaluation system to analysis this industry listed companies’profits quality. Then using this evaluation system made profits quality analysis, found the commonness:high level of return on capital, poor maintenance of cash, poor earnings stability and better growth. However the financial indicators just represent the external profit situation. Further discusses the enterprise interior various factors influence on earnings quality is necessary. From this we could understand enterprise’s business, management and the resources how to affect the company’s profits respectively. In order to prove that method is scientific and reasonable,为 selected huayi brothers as an example, using the above method to evaluate its profits quality. In this process we found some problems that exist in the profitability. Then provide suggestions to improve corporate’s profits quality.In order to evaluate film and television industry listed companies profits quality, we can first analysis level of return on capital, then discuss cash protection, stability of earnings and earnings growth. Using the information provided in financial statements for index analysis, we can understand the perspective of quantitative characteristics of profitability. Then, from the internal factors of affecting the profits quality, analysis the effect of each factor to the enterprise earnings performance.The results also reminds us that we need to attach great importance to each factor affecting the quality of corporate profits. Through reasonable methods to improve these elements can achieve the goal of improving the quality of corporate profits. For film and television industry listed companies, in order to improve the profits quality should pay attention to content creation-film and television works, strengthen the competitive power of the main business; improve the quality of assets and income; make capital structure reasonable, control financial risk effectively; promote company’s brand awareness, pay much attention to the human resources; improve corporate governance structure, effectively prevent the surplus manipulation. The improvements of Profits quality will help enterprises stand out from the competition. It also can make the whole industry better.