Research On Profit Model And Financial Evaluation Of Kuaishou Technology

Since the popularization of 4G network,China’s short video industry has achieved rapid development,especially under the influence of the epidemic in 2020,short video has got the opportunity to frantically seize the territory.Short video has become a pastime and social way for people to isolate and work at home,and the user scale of short video has been further increased.As the world’s leading content community and social platform,as well as a leading enterprise in the short video industry,Kuaishou provides users and industry participants with an efficient and convenient digital platform,and has achieved rapid revenue growth.At present,the short video industry has entered a precipitating period,and the competition pattern within the Red Sea has become stable,so the exploration of a deeper profit model of the short video industry has become the key to the future development of the short video industry.In this paper,Kuaishou is selected as a case study.Based on the analysis of five factors of Kuaishou’s profit model,financial evaluation indexes are selected from four aspects of Kuaishou’s debt paying ability,profitability,operating ability and development ability to establish a comprehensive evaluation system of Kuaishou finance,and the entropy method is used to construct a comprehensive evaluation scoring model of Kuaishou finance.Combined with the current analysis of Kuaishou’s income cost,Kuaishou’s profit model and its changes,the calculation results of entropy value method are evaluated,in order to obtain the enlightenment of Kuaishou’s profit model.The main research methods in this paper are literature research,case analysis and quantitative analysis.Firstly,through relevant websites and books,I read and collect literature on profit model,extract the author’s central idea from it,and summarize each point of view to provide relevant reference for the writing of the paper.Secondly,the Kuaishou profit model is analyzed and evaluated through the five elements of the profit model and entropy method,which provides strong support for the study of the company’s profit model.At the same time,it also explains the possible risks and improvement suggestions of the Kuaishou profit model in the future.The research results show that the growth of Kuaishou’s profit objects is slowing down,Kuaishou’s increasing profit leverage also makes Kuaishou’s current financial situation worse.Accelerating commercialization and expanding the content ecosystem have led to an increase in costs and a sharp decline in the net interest rate on sales.The growth of operating revenue has slowed down gradually,and can not cover the cost of the input,resulting in the net profit has been negative.The comprehensive financial performance also deteriorates year by year,and the performance is not ideal.However,through the analysis of Kuaishou’s profit model,it can be known that part of the reason for the deterioration of Kuaishou’s financial performance is not the poor business performance of the enterprise,but on the contrary,the good performance of the enterprise.In fact,the current losses of Kuaishou have been transformed into intangible "assets" of Kuaishou,and it remains to be seen whether this "asset" can really bring greater profits to the enterprise.Kuaishou needs to solve the problem of high cost,reduce cost and increase efficiency,and improve corporate profits;Break the circle of growth,expand the scope of users and business channels,to achieve stable growth of operating profit.