| With the changes of the times and the accelerating process of economic globalization,China’s listed companies have sprung up.As one of the important components of China’s traditional industries,home appliance manufacturing has become the backbone of my country’s national economy to achieve sustainable development.However,in recent years,a large number of international brands have settled in the country,which has led to an increasingly saturated domestic market,making listed companies in the home appliance industry face enormous pressure and challenges.As one of the important basis to reflect the sustainable operation ability and profitability of enterprises,earnings quality is a problem of great concern to all stakeholders.Therefore,in order to maintain strength and enhance the company’s image in the fierce competition,the research on earnings quality evaluation of household appliance industry has become very important.This paper selects Sichuan Changhong Electric Co.,Ltd.,which has entered a mature stage,as the research object,evaluates its earnings quality by using factor analysis method,analyzes in detail the important factors affecting the earnings quality of Sichuan Changhong,and provides corresponding improvement countermeasures for it.First,the research status of earnings quality at home and abroad is reviewed.Secondly,the theoretical basis and evaluation methods of earnings quality are introduced in detail.Thirdly,the basic situation,organizational structure and operation status of Sichuan Changhong will be introduced.Then,combined with the operating characteristics of the household appliance industry,the Sichuan Changhong earnings quality evaluation system is constructed from five aspects: profitability,safety,efficiency,growth and technology.Based on the establishment of the earnings quality evaluation system,the factor analysis method is used to analyze the earnings quality of Sichuan Changhong horizontally and vertically,and the scores and rankings of earnings quality are obtained,and then the problems existing in the earnings quality of Sichuan Changhong are analyzed,including: weak profitability,The solvency is not strong,the growth ability needs to be improved,and the R&D and innovation ability is insufficient.Finally,in response to the existing problems of Sichuan Changhong’s earnings quality,corresponding improvement strategies are put forward,including: improving profitability,improving debt solvency,improving growth ability,and enhancing innovation and research and development capabilities. |
