Research On The Earnings Quality Of Alpha Based On Time Series Analysis

Animation industry is known as the most creative sunrise industry in the 21 st century.After a period of rapid growth,the profit performance of listed companies in China’s animation industry in recent years is not ideal,forming a strong contrast with the high expectations of the market.In this context,using scientific and reasonable analysis methods to comprehensively evaluate the earnings quality of animation enterprises can help enterprises adjust their production and operation activities in time and ensure high-quality profits.On the basis of combing the concept and characteristics of earnings quality,combined with the characteristics and development status of animation industry,and referring to the existing research results of Chinese and foreign scholars,this paper selects 21 secondary indicators from five dimensions of earnings quality:profitability,cash flow,sustainability,structure and risk,and constructs a earningsquality index evaluation system suitable for animation industry.Then,Alpha Entertainment,the "first share of Chinese animation" in the animation industry,is selected as the sample enterprise.Based on its financial data from 2015 to 2019,a time series is constructed,and its profit quality is analyzed and evaluated by principal component analysis.The results show that Alpha entertainment has invested a huge amount of money to expand its business sector in the face of the situation that the existing IP products can not appreciate and maintain their value,resulting in a large fluctuation in its profit quality from 2015 to 2019.However,since 2019,with the adjustment of strategic layout and business strategy,Alpha entertainment still needs to face greater risks under the pressure of market environment,but its profit quality shows an upward trend.Therefore,this paper proposes that Alpha entertainment needs rational expansion and smooth transformation.At the same time,we also need to strengthen the capital chain management to ensure the cash flow of daily operation.In addition,research & development and publicity investment need to be strengthened to maintain core competitiveness by enhancing the influence of animation IP.