Research On The Evaluation And Promotion Of Earnings Quality Of Infinova

In recent years,with the promotion of national policies such as "Xueliang project" and the continuous updating of professional technologies such as artificial intelligence and 5G Technology,The scale of security industry grow rapidly,But the polarization of the industry is significant,Industry leaders grow steadily and continually.However,some small and medium-sized enterprises are difficult to adapt to the rapid pace of technology and product upgrading,and their market share is gradually shrinking,even facing the danger of being eliminated.And the international market environment has become more complex,and the growth rate of the international market of the security industry has declined.How to keep one's own position in the fierce market competition at home and abroad and even develop it is worth considering.The analysis of earnings quality mainly focuses on the relationship between accounting income and cash flow,which is conducive to overcoming the unreality of enterprise profits made by accrual,mining and analyzing the most essential income ability of enterprises,so as to improve financial competitiveness and achieve safe,stable and sustainable development.Infinova is a security enterprise in Shenzhen,which mainly produces and sells security products and provides intelligent,big data and Internet operation services.From its financial data in recent five years,it can be seen that its poor performance of net profit and cash flow from operating activities may affect the healthy development of the enterprise.Therefore,the paper analyzes its earnings quality,expects to find out the root causes of the problems that hinder its development,and put forward corresponding improvement measures.First of all,the paper introduces the research background and research status at home and abroad by literature research,Secondly,give a brief introduction from the industry and present situation angle;Then,using factor analysis,ratio analysis and comparative research,according to the five characteristics related to earnings quality: profitability,growth,cash security,safety and sustainability,11 indicators are selected to build the earnings quality model for analysis.It can be concluded that there are the following problems: High impairment amount of goodwill leads to poor profit growth;High proportion of inventory and accounts receivable leads to poor cash security and weak security;Low proportion of operating profit leads to weak sustainability,etc.Finally,put forward corresponding optimization counter measures.