Research On The Profit Quality Of 37 Interactive Entertainment

Research on the quality of earnings has always been important and necessary.China’s economy began to develop rapidly in the late eighties of last century,and the market-related system was gradually improved,followed by a variety of information,data,consulting,how to find real and relevant information in the vast market information,for market participants is crucial.The study of profit quality is to find out the real relevant data and information from the complex and diverse information for analysis and research,and then explore the true level of the profit of the target enterprise.On the one hand,the study of profit quality can provide stakeholders with real and reliable information,grasp the profitability of the target company as a whole,help it make correct decisions,and make reasonable investments;On the other hand,it helps the target company to find out its own problems and operational loopholes,discuss solutions in a targeted manner,help the company develop more healthily and stably,and at the same time provide reference for enterprises in the same industry,help other enterprises in the same industry to operate better,and further contribute to the sustainable prosperity and development of the industry.This paper first summarizes and evaluates the basic concepts of profit quality,and then discusses the evaluation elements of profit quality,a total of five aspects,of which authenticity is used as the basis for profitability,cash,stability and growth.Next,the factors affecting the quality of earnings are summarized.Next,combined with the many characteristics of the online game industry in which the target enterprise 37 Interactive Entertainment is located,such as asset-light model and high cash ratio,etc.,based on the evaluation elements of five aspects and the dimensions of relevant indicators,the profit quality evaluation system of 37 Interactive Entertainment was constructed.Then,based on this evaluation system,on the one hand,the data of the last five years of 37 Interactive Entertainment was selected for longitudinal analysis,and on the other hand,a number of relevant companies in the industry were selected to conduct horizontal comparative analysis with 37 Interactive Entertainment.The results show that the problems of 37 Interactive Entertainment are as follows: the profitability level is low and the profitability is weak;Weak control of costs;Weak ability to recycle cash;Insufficient earnings growth.Then,the external reasons include policy factors and industry competition factors,and the internal reasons include the low level of enterprise accounts receivable management,improper cost and expense control,and the proportion of enterprise R&D investment is lower than that of the same industry.Finally,on the basis of analyzing the problems and related reasons for the profit quality of 37 Interactive Entertainment,the following suggestions are put forward: adapt to policy changes,seize the opportunity of planning,and steadily expand "going to sea";Focus on refined project management and improve project management process;Establish a customer credit evaluation system to improve the level of accounts receivable management;Strengthen cost control and improve the efficiency of expense use;Enhance R&D capabilities and create high-quality games.The research of this paper is helpful to accurately and comprehensively grasp the profit quality of 37 Interactive Entertainment,explore the current problems in the profit quality of 37 Interactive Entertainment,analyze the deep-seated reasons,and put forward targeted suggestions,so as to improve the profitability of 37 Interactive Entertainment,and also provide some guidance and reference for other enterprises in the online game industry.