Research On Improving Profit Quality Of X Game Company Based On Cash Flow Analysis

Network technology is developing rapidly,and people’s requirements for the quality of entertainment life are also growing.Online games have gradually become an entertainment project of choice,but at the same time,it has also led to new social problems such as information security,Internet dependence,data and information surplus.Chinese gaming companies mainly receive cash flow profits through various models such as player playtime,virtual prop loading,value-added services and advertising implantation.Thus,if the state’s policy for further stricter management of the online gaming environment is released,it will certainly have some impact on the operating income and business development of the Chinese gaming industry.Since traditional profit analysis indicators cannot fully and truly reflect potential problems with the quality of profits,it is necessary to conduct a thorough analysis of the level of cash flows.Based on how online gaming companies adapt to changes in the external environment and improve their internal management positions,this paper presents effective rationalization recommendations to improve the quality of profits and help online gaming companies achieve healthy and long-term development.This article analyzes X Games,a representative company in the gaming industry.First,the research literature on profit quality is explained and sorted,;secondly,four profitability,cash,stability and growth assessment indicators are selected to create a profit quality analysis model;Based on the data of the annual report of the X Gaming Company,the SPSS model is used to analyze the quality of the company’s profits and proposes the conclusion of the study: It is believed that the profit quality of the X gaming company is poor,mainly because the company’s collection system is not perfect,the risk of the company’s cash flow increases,the expansion strategy of continuous mergers and acquisitions increases the financial risks of companies,which seriously affects the stability of the quality of the profits of the companies and cashworthiness,while the cash eligibility of the companies,while the deteriorating political environment and the loss of product competitiveness reduce the growth in the quality of corporate profits.At the end of this document,appropriate recommendations are made for the healthy development of case enterprises: to optimize the structure of cash and do a good job in volume management,to reduce the cost of enterprises to improve the level of cash flow,to adjust the business strategy and to create an early warning mechanism for corporate risk,to gradually improve the quality of corporate profits and to provide a reference to other Gaming Companies in China.