Study On The Profit Quality Of Jiangtong Company

The profit information in a listed company's consolidated statements has been part of the information which investors have been most concerned about.However,recent years have witnessed frequent occurrence of financial statement falsification,which has seriously damaged investors' interests.Currently,China's economic development has shifted from the high-speed growth stage to the high-quality development stage.How to safeguard investors' relevant interests and improve listed companies' profit quality through exploration of the profit quality behind listed companies' profit information has been an issue requiring immediate solution,if China's capital market wants to achieve sound,steady and high-quality development.After a systematic summary of basic theories about profit quality,this paper chooses ten corresponding financial indexes from four dimensions(profitability,cash realization,stability and growth),considering the practical development situations of Jiangxi Copper Corporation Limited.Take the specific conditions and objective status of profit quality of Jiangxi Copper Corporation Limited for example.According to the overall development status of the industry,the financial indexes are first used to conduct a horizontal and vertical comparative analysis of the profit status of Jiangxi Copper Corporation Limited.Next,the Principal Component Analysis(PCA)is used to examine the profit quality ranking of Jiangxi Copper Corporation Limited in the ferrous metal industry.Analysis results suggest that profit growth of Jiangxi Copper Corporation Limited demonstrate a good stability,but the company's current cash realization is low,and the collection of receivables is slow.The profitability and profit growth of the company was on a downward trend from 2013 to 2015.Though there was a slight increase from 2015 to 2017,the overall profit performance was still not ideal.Besides,the profit quality ranking of Jiangxi Copper Corporation Limited hasbeen declining in recent years,and the profit quality is poor.Finally,based on the above discussions,causes of the above problems are analyzed,and the countermeasures and suggestions for improvement of the profit quality of Jiangxi Copper Corporation Limited are put forward.