Research On Profit Quality Evaluation Of Listed Companies In Home Appliance Industry In China

Book profit can only reflect the amount of profit,it is difficult to directly reflect where the profit comes from,how much cash flow,whether it can be obtained continuously,and other quality characteristics.Therefore,we should not only analyze the profits according to the data on the surface of the financial report,but conduct a comprehensive study on the quality of the profits of the company,reflect the real operating conditions of the company,and provide useful decision-making information for investors.The home appliance industry is an industry with early opening and high marketization characteristics in the process of reform and opening up in China.From an early introduction to subsequent going out,under the background of further integration of information technology in the future,the development of the industry will provide good observation and research samples for the transformation and upgrading of China’s economic structure and social and economic development.The research contents of this thesis include :(1)combining the characteristics of the household appliance industry,on the basis that the profits reported by enterprises are real and reliable,the factor analysis method is used to construct the profit quality evaluation model of listed companies in the household appliance industry from the four dimensions of profitability,cash,growth,and stability.(2)The evaluation model is used to evaluate the profit quality of household appliance enterprises in China,and the evaluation results show that the profit quality of Konka Group Co.,Ltd is relatively low.(3)cause the Konka Group Co.,Ltd profit is the main cause of poor quality,cost control leads to a poor level of profit profitable is not strong,the products less competitive market results in the continuous decline in profits,a secondary share proportion is too large make profit structure leads to poor stability and diversified business center of gravity is not clear,eventually lead to low quality of corporate profits.(4)Konka Group Co.,Ltd can improve the profit quality by optimizing the enterprise cost management mode,improving the product market competitiveness,adjusting the profit source structure,and grasping the gradual process of diversified strategic operation.Moreover,Konka Group Co.,Ltd is a typical case selected by the model calculation results and is also a well-known household appliance enterprise.Therefore,the analysis and suggestions on Konka can be extended to other household appliance enterprises,thus helping the whole household appliance industry to improve the profit quality and promote the healthy growth of the industry.The innovation of this thesis lies in the lack of pertinence in the selection of evaluation indicators in most of the current research on profit quality,and seldom distinguish according to the characteristics of the industry.This thesis first considers the characteristics of the home appliance industry and then selects appropriate indicators to evaluate the company’s profit quality,which not only expands the concept of profit quality in the home appliance industry but also provides a certain reference for other industries in the construction of models.