Analysis On The Profit Quality Of WD Theatre

China's cinema industry has achieved remarkable results after many years of development since the 2002 reform.With the development of the Internet and the increasing demand of consumers for spiritual and cultural products,the industry in China is still in a rapid rise.The comprehensive evaluation of the earnings quality of listed cinema companies can help managers find problems in financial activities and daily operations,and then propose corresponding countermeasures to help enterprises reduce business risks,improve profit quality,and enhance market competitiveness.Based on the literature research method and the domestic and foreign scholars 'analysis and evaluation of profit quality,this paper constructs the financial index analysis system from the four aspects of profitability,stability,growth and cash security.Then based on the financial data of WD theaters for the past five years from 2013 to 2017,comparing the overall situation of WD theaters and theaters,the analysis found that the profitability of WD theaters began to decline from 2013.The concrete performance is:the enterprise's profit ability decreases;Reduced growth capacity;Reduced cash security capacity;Assets and liabilities ratio is high.The reason is that the cinema industry is too dependent on the revenue of the movie box office,and the short value chain and profit model can not be separated.In recent years,many film and television media industries have successively established cinema and cinema companies,and they have been moving closer to WD theaters in hardware infrastructure such as screening equipment and viewing experience,and competition among the industry has intensified.WD theaters that rely solely on the movie box office as the main business revenue are gradually losing the competitiveness and competitive advantage of the main business,which directly leads to the decline of profitability and growth ability;In addition,WD theaters continue to build new theaters and acquire overseas theaters in order to expand the market.The resulting high costs are far greater than the revenue from the box office in the short term,and indirectly affect the company's profit quality.Increased financial and operational risk.This paper puts forward corresponding countermeasures and suggestions for the decline of revenue quality in WD theaters.It is believed that the company should first get rid of the phenomenon of relying heavily on box office income as the main business income,and extend the value chain to enhance the source of non-main business income from the profit model of enriching the cinema.Second,should slow down or even temporarily stop blindly expansion to seize the pace of the market;Finally,companies should focus on marketing strategies and price strategies to attract consumers and develop long-term customer relationships with consumers.Due to the fact that the theater industry has a large upfront investment and a long period of capital recovery,with the intensification of market competition,WD theaters should avoid blindly expanding to develop their business,and they should enrich their profit patterns and expand the sources of non-primary business income.In this way,we can improve the profit quality on the basis of maintaining the original profit quality.