D Company Profit Quality Analysis

With the rapid development of China's market economy,market competition is becoming more and more fierce,more and more companies appear quickly,but disappear quickly.Managers and investors pay more attention to the financial reports provided by companies.Profit,as the most important criterion to evaluate the company's performance,can more scientifically and comprehensively reflect the company's operating results for a certain period of time.Profit quality can comprehensively reflect the company's competitive strategy choice,and provide data support for the company's future strategic choice.The company's profit quality has gradually become a key research area.By analyzing the company's profit quality and choosing the comprehensive evaluation method of profit quality,the company investors can not only pay attention to the analysis of profit amount,but also evaluate the company's profit quality more comprehensively and objectively.Make the company better and more real understanding of the company's profit quality,timely and targeted adjustment of the company's business strategy.As for D Company,the company's operating income base is small and its profit quality is relatively weak.Therefore,starting from the relevant theories,this paper attempts to establish an all-round profit quality system from three aspects: profit structure,profit formation process and profit results.Firstly,the paper uses the longitudinal factor analysis method to analyze and evaluate the profit quality of D Company from 2012 to 2017.After that,we select the best year of profit quality of D Company and use the horizontal factor analysis method to compare the profit quality of D Company with six bench marking companies in the same industry,so as to objectively evaluate the profit quality of D Company Finally,find out the reasons of the company's profit quality problems and put forward constructive measures for the company on the basis of analysis.