Study On The Improvement Of Profit Quality Of Shangpin Home Collection

With the rise of disposable income of urban residents,consumers pay more attention to personalized needs when purchasing household products and services.The14 th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Outline of the 2035 Vision Targets mention the need to adapt to individual and differentiated consumption needs.As the custom home furnishing industry has a good development prospect,more and more potential competitors have been attracted to join in recent years,which makes the competition in this industry increasingly fierce.The novel coronavirus epidemic also causes some changes in the business model of this industry.In this case,the profitability of customized home furnishing enterprises is becoming more and more a concern of stakeholders.Guangzhou Shangpin Home Collection Co.,Ltd.is a first-line brand in the custom home furnishing industry.In order to understand the real profit level of the enterprise in such a complex external environment,it is necessary to further evaluate its profit quality.Guangzhou Shangpin Home Collection Co.,Ltd.as the leading enterprise in the industry,has continued to increase revenue in recent years without increasing profits,resulting in a decline in profit quality year by year,and the competitive advantage it had in the early years has become less obvious.This article from the profit quality,analysis of Guangzhou Shangpin Home Collection Co.,Ltd.in recent years operating conditions.From the profit quality of profit,sustainable stability,cash security,growth of these aspects of the evaluation index is selected to analyze the profit quality of Guangzhou Shangpin Home Collection Co.,Ltd.The relevant financial data of Guangzhou Shangpin Home Collection Co.,Ltd.from 2017 to 2021 were calculated to obtain the corresponding index value,and the horizontal and vertical comparative analysis was carried out with the industrial benchmark Opai Home Furnfurning and the industrial average.The results show that the profit quality of Guangzhou Shangpin Home Collection Co.,Ltd.is at a low level in the industry,and the performance of each dimension of profit quality is relatively poor.The enterprise has some problems,such as weak profitability of assets,slow growth of operating income,weak ability of cost control and so on.In view of these problems existing in the enterprise,this paper puts forward some countermeasures and suggestions accordingly: to rapidly promote the development of the assembly business,improve the efficiency of the company’s asset operation,and prudently develop the bulk business,etc.,hoping to help Guangzhou Shangpin Home Collection Co.,Ltd.improve the status quo of profit quality.