| The development of enterprises is an important driving force to promote social and economic progress,and the high level of profitability is the guarantee for enterprises to have a good development prospect.In addition,with the increase of financial fraud,the development of the country and the higher requirements of investors and consumers for enterprises,the quality of profit has become a common concern of all sectors of society.For China’s food industry,as it is still in the growth stage,there are many problems,the study of profit quality has certain significance.Due to the different nature and characteristics of the industry,the study of profit quality in other industries has no great reference significance for the food industry.Therefore,this paper chooses the representative enterprise in the food industry--Xiwang food company as the research object.After literature review,this paper selects 14 financial indicators such as return on equity and non-recurring profit and loss ratio to build a comprehensive index evaluation system.Taking 20 enterprises in the industry as samples,the coefficients and weights of five indicators including profitability,debt paying ability and operating ability were determined by using principal component analysis method,and applied to the financial indicators of Xiwang food company in the recent 7 years to obtain the comprehensive financial score and ranking of earmings quality over the years.In order to get the ranking of Xiwang food company in the industry,the comprehensive score of financial indicators of 20 enterprises in 2017 was calculated.At last,we score the profit quality from three aspects.After comprehensive scoring,it was found that the profit quality of Xiwang food company had problems in cash recovery,dual main business management and other aspects.Finally,through analysis,this paper puts forward nine Suggestions to improve the profit quality,such as precise positioning,adjustment of proportion of dual main businesses,and advertising. |
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