Research On The Income Quality Of HK Security Company Under The Digital Background

The background of digitalization has changed the development strategies of security companies,while the changes in the international environment,such as the trade war between China and the U.S.,have also affected the development of the security industry.HK Security,as a global security leader,has maintained high growth and strong profitability in the past.Earnings quality is an important information to evaluate the development status and capability of the company,which is directly related to the company’s operation and investors’ decision,therefore,it is of significant practical significance to study the earnings quality of HK Security Company.This paper compares the current situation of earnings quality research at home and abroad,explains the basic theory of the paper,analyzes the earnings quality of HK Security Company by comparative research method,combines the current situation of the security industry and the current situation of HK Security Company’s operation,and constructs the earnings quality evaluation system of HK Security Company based on the principles of earnings quality evaluation index selection,combining both financial and non-financial indexes,and selecting relevant indicators.The system is based on the principles of earnings quality evaluation,combining financial and non-financial indicators,selecting relevant indicators,and constructing a system to evaluate the earnings quality of HK Security Company,taking DH Company as a comparison company in some indicators,and comparing the main financial indicators with other companies in the industry.Through analysis,it can be concluded that the overall income quality of HK Security Company is good,but at the same time,there are also the following problems:the excessive "safety" of the income,and the overall capital strategy is conservative;The management efficiency of accounts receivable has gradually become low,and the ability to collect cash is slightly weak;The growth rate of operating income has slowed down,there are uncertainties in growth,etc.,and the reasons are analyzed from the internal and external environment,that is,the impact of national policies and economic environment;The expansion of the company’s business scale has increased costs and expenses;The security and stability of the enterprise industrial chain have weakened;The uncertainty of profitability of digitally innovative products.Based on the problems and reasons for the revenue quality of HK Security,the strategy of strengthening the industrial chain and implementing the supply chain digitalization strategy is finally proposed;Stabilize the revenue rate of the main business and use digital technology to deploy new businesses;Pay attention to enterprise cost control and improve revenue sustainability;Strengthen the management of accounts receivable and rationally use financial leverage;Suggestions such as promoting the digital transformation of enterprises and expanding the open cooperation ecosystem to improve the revenue quality of HK Security.