Research On The Quality Of Yili’s Share Earnings

With the improvement of China’s capital market,the capital source channels for the development of domestic enterprises have been gradually widened,and the capital structure of enterprises has been continuously improved,which has greatly contributed to the development of China’s economy and the rise of domestic economy.However,unlike foreign mature capital markets,the development time of China’s capital market is relatively short,and the capital market supervision still needs to be improved.Besises,most investors lack information channels and professional knowledge of professional institutions,resulting in frequent financial fraud in the capital market,especially in terms of corporate profits.In the long run,This is not conducive to the healthy and sustainable development of enterprises.Therefore,when measuring the profitability of enterprises,it is necessary to build a more scientific and reasonable profit quality evaluation system to fully reflect the development and profitability of enterprises.As an important industry related to people’s livelihood in China,the dairy industry has high expectations from investors and capital market,and the relevant regulatory authorities of capital market and product quality also pay full attention to it.Yili is the industry leader of the drinking milk market.The rapid development of the drinking milk market has driven the rapid growth of Yili shares and occupies an important position in the industry.But since 2020,the negative impact of COVID-19 on the market will inevitably affect the profitability of Erie.Therefore,this article will study the profit quality of Yili stock in order to get more accurate profit quality analysis through more scientific and reasonable profit quality evaluation system,and then put forward useful suggestions.Promote the healthy development of Yili shares and even the industry.This paper mainly adopts the combination of qualitative and quantitative analysis.In the quantitative analysis,we comprehensively consider the four aspects of enterprise profit stability,growth,profitability,safety and security,select appropriate financial indicators,determine the profit quality analysis model suitable for the dairy industry through factor analysis and principal component analysis,and obtain the profit quality score of Yili shares.In qualitative analysis,the level of Yili’s profit quality in the industry is determined by comparative analysis.The results show that the overall profit quality of Yili shares is at a high level in the industry,but there are also deficiencies: in terms of profit stability,the inventory turnover rate is low;In terms of profitability and growth,the growth rate of main business income slowed down;In terms of profitability,it is necessary to maintain the gross profit margin and net profit margin of the enterprise;In terms of cash and security,Yili needs to reduce the asset liability ratio.To sum up,Yili needs to start from the following perspectives to improve the current situation.First,it needs to consolidate its main business,which requires ensuring the quality of products,establishing its own good image in the market,expanding channels and making layout in advance in the new track.On the one hand,it is the reserve of talents,and secondly,it is the cooperative relationship with channel providers.Second,from the perspective of financial structure,it is necessary to reduce the asset liability ratio,which requires adhering to the prudent principle of examination and approval in the decision-making process and appropriately introducing strategic investment.Third,we need to improve the speed of inventory turnover.On the one hand,we need to speed up the inventory clearing of unsalable products.Secondly,we need to formulate accurate sales strategies in sales.Fourth,we need to maintain the profitability of products and explore new fields while reducing product costs.