A Study On The Income Quality Of Listed Companies In China’s Home Appliances Industry

In recent years,with the rapid development of the capital market in China,companies are rushing to be listed,and investors are also increasing,various investment methods are also sought after by the public.Under the condition of asymmetric information,as an external investor,the understanding of the enterprise’s operating condition is mainly dependent on the information provided by the financial statements published by the enterprise.In the information provided by this huge information network,accounting income information is undoubtedly the focus of investors.Although the financial information reporting requirements of listed companies are becoming more and more perfect,there are still many listed companies decorating the profits in the disclosed profit statement for different purposes.In this context,the study of earnings quality of listed companies naturally attracted people’s attention.Since China became a member of WTO in 2001,China’s household appliance industry has entered a new stage of all-round development.However,enterprises in the face of opportunities,but also will encounter many difficulties and obstacles.Haier is one of the most valuable brands in China.According to statistics,Qingdao Haier accounts for more than 25% of the household appliances industry.This is a level that no other company can reach.Only considering the white goods market,Qingdao Haier accounts for about 34%,while in other small home appliances market,Haier is also developing better and better.Of course,Haier’s products are also popular in other countries.In this context,after studying and absorbing the ideas and methods of other scholars,this paper analyzes the profit quality of Qingdao Haier from four aspects,including profitability,stability,cash security and growth,through the horizontal comparison with the industry average and the vertical comparison with Qingdao Haier itself,this paper combs and analyzes its income quality.On this basis,the factors that affect the quality of Qingdao Haier and other companies in the industry are studied.The results show that the profit stability of Qingdao Haier is good,but the return on capital needs to be improved and the growth is unstable.In order to improve its income quality,Haier has to strengthen capital management,develop high-profit business,strengthen innovation,etc.Qingdao Haier,as a leader of home appliance industry,we evaluate and analyze its profit quality,and give some concrete countermeasures,which will help the company to develop better in the future.We also hope to give reference to other companies in the same industry,so that more and more domestic enterprises can step out of the country and create more Chinese brands.