Research On The Profit Quality Of Listed Companies In Media Industry ——Taking H＆R Century Pictures As An Example

In recent years,the media industry has been undergoing a "calming-down period" and is strictly regulated.The supervision has become increasingly stringent,and more conditions are set than before.Under the influence of the external environment,the financing conditions of companies in the industry are more severe,because rational investors not only pay attention to the amount of profits on the financial statements of enterprises,but also pay attention to the quality of profits.Therefore,it is of great practical significance to conduct in-depth evaluation and analysis of the profit quality of film and television companies.This dissertation firstly sorts out the domestic and foreign literature research on profitability quality,and constructs a profitability quality evaluation system for companies in the film and television industry from the four dimensions of profitability,stability,availability and growth.On this basis,combined with the annual reports from 2016 to 2020 released by H＆R Century Pictures Film and Television Media Co.,Ltd.（referred to as H＆R Century Pictures）,a comparative analysis of the profit quality of H＆R Century Pictures was carried out.The data analysis results show that the profitability,stability and growth of H＆R Century Pictures have all declined.Further principal component analysis was carried out,and it was found that the comprehensive profit quality score of H＆R Century Pictures showed a downward trend from 2016 to 2020,and was lower than the average profit quality score in the film and television industry from 2016 to 2018,and in 2019 and 2019.exceeds the industry average in 2020.It can be seen that the profit quality of H＆R Century Pictures is relatively low,the level of cash protection needs to be improved,the stability of profitability is low,and the ability to sustain growth is weak.Affected by factors such as the impact of the epidemic and changes in the film and television industry,the balance of accounts receivable has greatly affected the company’s cash security level,and the sharp decline in main business income has affected the stability of profitability,resulting in the lack of sustainable growth.Finally,in order to improve the profit quality of the case company,this paper tries to put forward corresponding countermeasures and suggestions from four dimensions:attaching importance to cost control,improving the accounts receivable management system,focusing on main business,and attaching importance to sustainable development to improve growth.The research aims to provide a theoretical reference for companies in the industry to achieve sustainable development.