Study On Profit Quality Of Midea Group

In the 40 years of reform and opening up,China's home appliance enterprises have experienced a brilliant development path from scratch,from weak to strong,and many well-known home appliance brands such as Midea,Changhong and TCL have emerged.Nowadays,China's home appliance industry has a high degree of maturity,with a complete range of products and strong R & D capabilities.The products have been exported to more than 140 countries and regions around the world,and become the fist products in China's export trade.As an important indicator of comprehensive evaluation of the development quality of enterprises,the profit quality,which directly reflects the actual financial situation and development prospects of enterprises,is of great guiding significance for the management to formulate development strategies and improve production and operation processes.Therefore,the enterprise's profit quality has become the enterprise factor that the outside investors focus on.In this paper,we will select the appropriate indicators to construct Midea Group's profit quality analysis and evaluation system from the five aspects of profitability,reliability,risk,growth and cash security,mainly including the growth rate of net profit,the growth rate of sales gross profit,the growth rate of earnings per share and other indicators.It reveals whether the enterprise can effectively obtain profits from the market,whether the profits are true or not,the proportion of cash in profits,the possibility of future growth of profits,and the risks of profit links.Based on the research ideas of relevant researchers,this paper makes a detailed evaluation on the profit quality of Midea Group in 2012-2018,calculates various indicators of profit quality year by year,and makes a comprehensive analysis on the profit quality of Midea Group according to the specific values and the range of changes.According to the analysis results,in the six years from 2012 to 2018,Midea Group's profit quality is generally good,and with the economic recovery,the demand for home appliances increases,the profit quality is generally on the rise,with a bright future.