RD Company Profit Quality Analysis

For enterprises,in the current frequent occurrence of financial fraud incidents at home and abroad,a clear understanding of their own profit status plays a decisive role both for the development of the company itself and for stakeholders and users of information.As people pay more attention to the quality of corporate profits,analyzing the profit quality of an enterprise becomes more and more critical in the process of corporate governance.This is also a new focus of common concern for accounting academics and practitioners.Therefore,if we want to have a comprehensive and clear understanding of the quality of profits,the first thing is to correctly analyze the situation of corporate profits,which is of great significance for evaluating the quality of profits.Due to the current poor profit quality of SMEs in China,based on the research status of profit quality at home and abroad,the concept of profit quality is supplemented by the integration of relevant information.Then analyzed the four major characteristics of profit quality,namely,sustainability,growth,income and reliability.From the perspective of these four characteristics,we have selected representative indicators for constructing a profit quality evaluation index system.Then,the profit quality evaluation method applicable to the target company RD company is selected and a corresponding analysis model is established.Combining relevant financial information data,using factor analysis method and using IBM SPSS Statistics 22 software,we evaluated the profit quality of target company RD company for the four years 2013-2016,and reached the following conclusions.First,during the four-year period from 2013 to 2016,the reliability of RD's profits has remained relatively stable and has steadily risen.Therefore,the company can maintain as much as possible the issue of reliable profits.Second,starting with the characteristics of profit quality,combining various types of financial statements of the company and their own financial status,13 quantitative indicators were selected to construct a relatively complete profit quality evaluation index system for sample companies,and factor analysis was used.Build its own applicable profit quality assessment model.Third,through detailed and in-depth analysis and calculation,it was diagnosed that RD's profit quality was poor.Finally,aiming at the existing problems in RD company's profit quality in four aspects,the corresponding specific countermeasures are proposed to promote their improvement.This is also of positive significance to the industry in which the target company is located.It can be used to promote the entire model system to the entire industry and can play a certain guiding role.