Research On The Earnings Quality Of W Film Co.,Ltd.

With the film “Wondering Earth” has rewritten the box-office record during Chinese Spring Festival season,the production and investment of various movies by film companies have also become a hot topic.In addition,with a wealth of money centralized in film and television industry in recent years,many film companies have become the popular target of investors.As investors attach greater importance to company’s profit quality while paying attention to company’s operating scale and development prospects,comprehensive and reasonable evaluation of listed company’s profit quality in the film and television industry based on theory and evaluation standard of profit quality through indicator comparison can play a referential role for the investment decision-making of enterprise managers,creditors and other interest-related subjects.It can also help management to timely detect operational and financial loopholes.Formulating optimization and coping solutions combined with these inadequacies will facilitate companies to expand profit space,reduce risks and increase comprehensive profit level.Based on domestic and foreign scholars’ research conclusions on profit quality,this paper briefly elaborated the concept of profit qualityand related theories,and summarized the current profit situation and relevant indicators of W Film Company.Then,this paper emphatically compared from the following four aspects: cash collection property,structural property,sustainability and stability.Next,this paper has built the profit quality comprehensive evaluation system of W Film Company,selected representative companies in the film industry as analysis samples,and then conducted comprehensive evaluation and analysis on the profit quality of W Film Co.,Ltd.Then,the paper compared its profit quality with that of the film industry,analyzed the status of its profit quality level in the industry and the factors influencing the profit quality of W Film Co.,Ltd.In the end,the paper found out problems of profit quality in W Film Co.,Ltd,and proposed improvement suggestions.According to the analysis,structural property of film quality of W Film Co.,Ltd is lower than the average level of the film industry due to the simple profit source,less operation modes and profit models.Considering its ordinary sustainability of profit quality,poor core competitiveness,unsteady profit quality and poor resistance to market fluctuations,it is necessary to expand sales of film derivatives,strengthen the film making and distribution business,intensify its core competitiveness,optimize the value chain,regulate rational resource allocation to improve profit quality,thus promoting the development of W Film Co.,Ltd.At the same time,it provides reference and reference forother film companies and other industries to improve and adjust the profitability quality.