The Profit Quality Of Nanjing Tanker Corporation

Profit quality as an important indicator has been widespread concerned by the theoretical and practical circles to evaluate the profitability of enterprises,predict the viability of enterprises and judge the value of enterprises.From 2011 to 2014,the net profit of Nanjing Tanker Corporation was-74933.34 million yuan,-123834.79 million yuan,-591863.98 million yuan,-410.579 million yuan.As a result,the company was terminated on the Shanghai Stock Exchange on June 5,2014,becoming a sensational "first delisting of central enterprises" due to four consecutive years of losses hitting the delisting clause.However,the long-term profitability of Nanjing Tanker Corporation has been significantly enhanced through bankruptcy reorganization.From 2015 to 2017,the net cash flow of Nanjing Tanker Corporation generated from the operating activities was 1.128 billion yuan,1.301 billion yuan and 813 million yuan,respectively.Meanwhile,the Nanjing Tanker Corporation finally re-listed on the Shanghai stock exchange on January 8,2019,becoming the first stock to return to the market.Therefore,the changes in the profit quality of Nanjing Tanker Corporation have attracted more attention from the investors,and it is necessary to evaluate and judge the profit quality of Nanjing Tanker Corporation.This paper analyzes the alternative relation of profit structure and financial situation,the matching of profit structure and cash flow structure,and the matching of profit structure and asset structure based on the profit quality evaluation system from Qian Aimin and Zhang Xinmin(2008).Firstly,we integrated the Nanjing Tanker Corporation with the same industry constructing a suitable profit quality evaluation system for it.After that,we discussed the reasons for the changes in the profit quality of Nanjing Tanker Corporation and pointed out its space for improving the profit quality own to this profit quality evaluation.Then,we given the countermeasures and suggestions to further improve the profit quality of Nanjing Tanker Corporation in the next are,which will enhance the investor's confidence from the perspective of managers.Finally,we conclude this paper and pointed out its shortcomings and potentials.This paper mainly draws the following conclusions:Firstly,the profit quality of Nanjing Tanker Corporation after bankruptcy and reorganization is significantly higher than before,and it is worthwhile for returning to the A-share market.Secondly,the fixed assets of Nanjing Tanker Corporation has a serious impairment losses and the accounting subjects of asset impairment losses have a great impact on their profit quality.Thirdly,the profit quality ofNanjing Tanker Corporation has a large space for enhancement in asset structure optimization,financial cost control and profit structure improvement.In conclusion,Nanjing Tanker Corporation should actively adopt corresponding measures to further improve its profit quality in terms of optimizing asset structure,reducing financial expenses and improving profit structure.