IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i12p2107-d841262.html
   My bibliography  Save this article

Enterprise Profitability and Financial Evaluation Model Based on Statistical Modeling: Taking Tencent Music as an Example

Author

Listed:
  • Junke Chen

    (Department of Finance and Economics, Shandong University of Science and Technology, Jinan 250031, China)

  • Yifan Liu

    (Division of Information Science and Technology, Graduate School at Shenzhen, Tsinghua University, Shenzhen 518055, China
    Department of Electrical Engineering & Information Technology, Shandong University of Science and Technology, Jinan 250031, China)

  • Qigang Zhu

    (Department of Electrical Engineering & Information Technology, Shandong University of Science and Technology, Jinan 250031, China)

Abstract

In today’s diversified development model, the combination of modeling and business decision development is particularly important. The advanced theoretical business model established by modeling enables more efficient and accurate financial analysis. In the original enterprise profit evaluation model, the DuPont analysis method cannot take into account the development capability of the enterprise very well. This article takes Tencent Music as an example, and improves it on the basis of DuPont analysis. The Enterprise Capital Profit Model was proposed. At the same time, the LASSO regression based on cluster analysis is used to screen, analyze, and diagnose the financial data of Tencent Music in recent years, which verifies the validity and feasibility of the model. This paper uses the report data combined with statistical modeling to optimize the traditional financial evaluation method of enterprises, better find problems, and provide strategies for the further development of enterprises. Likewise, the method can be extended to other businesses to help them analyze their financial situation and provide a reference for future development.

Suggested Citation

  • Junke Chen & Yifan Liu & Qigang Zhu, 2022. "Enterprise Profitability and Financial Evaluation Model Based on Statistical Modeling: Taking Tencent Music as an Example," Mathematics, MDPI, vol. 10(12), pages 1-17, June.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:12:p:2107-:d:841262
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/12/2107/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/10/12/2107/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jiming Jiang & Mahmoud Torabi, 2020. "Sumca: simple, unified, Monte‐Carlo‐assisted approach to second‐order unbiased mean‐squared prediction error estimation," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 82(2), pages 467-485, April.
    2. Kan, Kan & Zhang, Qingying & Xu, Zhe & Zheng, Yuan & Gao, Qiang & Shen, Lian, 2022. "Energy loss mechanism due to tip leakage flow of axial flow pump as turbine under various operating conditions," Energy, Elsevier, vol. 255(C).
    3. Bogdan Cosmin GOMOI & Mioara Florina PANTEA & Lavinia Denisia CUC, 2021. "Brief Financial Diagnosis of a Transnational Company," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 1(12), pages 19-28, December .
    4. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    5. Michael Scharkow, 2013. "Thematic content analysis using supervised machine learning: An empirical evaluation using German online news," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 761-773, February.
    6. Natalia S. Matveeva, 2021. "Legislative Regulation Financial Statement Preparation by Micro Entities: International Experience," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 125-138, October.
    7. Chong-Mao Li & Tao Cui & Rui Nie & Yuli Shan & Juan Wang & Xiangyan Qian, 2017. "A Decision Model to Predict the Optimal Size of the Diversified Management Industry from the View of Profit Maximization and Coordination of Industrial Scale," Sustainability, MDPI, vol. 9(4), pages 1-11, April.
    8. Ciao‐Wei Chen, 2019. "The Disciplinary Role of Financial Statements: Evidence from Mergers and Acquisitions of Privately Held Targets," Journal of Accounting Research, Wiley Blackwell, vol. 57(2), pages 391-430, May.
    9. Jana Coronicova Hurajova & Zuzana Hajduova, 2021. "Multiple-Criteria Decision Analysis Using TOPSIS and WSA Method for Quality of Life: The Case of Slovakia Regions," Mathematics, MDPI, vol. 9(19), pages 1-11, October.
    10. S. P. Dobrovolsky, 1958. "Economics Of Corporate Internal And External Financing," Journal of Finance, American Finance Association, vol. 13(1), pages 35-47, March.
    11. Hopkins, PE, 1996. "The effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgments," Journal of Accounting Research, Wiley Blackwell, vol. 34, pages 33-50.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Skrynkovskyy, Ruslan & Pavlenchyk, Nataliia & Tsyuh, Svyatoslav & Zanevskyy, Ihor & Pavlenchyk, Anatoliі, 2022. "Economic-mathematical model of enterprise profit maximization in the system of sustainable development values," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonio Davila & George Foster & Xiaobin He & Carlos Shimizu, 2015. "The rise and fall of startups: Creation and destruction of revenue and jobs by young companies," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 6-35, February.
    2. Giordani, Paolo & Jacobson, Tor & Schedvin, Erik von & Villani, Mattias, 2014. "Taking the Twists into Account: Predicting Firm Bankruptcy Risk with Splines of Financial Ratios," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 49(4), pages 1071-1099, August.
    3. Li, Chunyu & Lou, Chenxin & Luo, Dan & Xing, Kai, 2021. "Chinese corporate distress prediction using LASSO: The role of earnings management," International Review of Financial Analysis, Elsevier, vol. 76(C).
    4. Suzan Hol, 2006. "The influence of the business cycle on bankruptcy probability," Discussion Papers 466, Statistics Norway, Research Department.
    5. Pavol Durana & Lucia Michalkova & Andrej Privara & Josef Marousek & Milos Tumpach, 2021. "Does the life cycle affect earnings management and bankruptcy?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 425-461, June.
    6. José Galindo & Andrés Tiseira & Roberto Navarro & Lukas Benjamin Inhestern & Juan David Echavarría, 2022. "Numerical Analysis of the Effects of Different Rotor Tip Gaps in a Radial Turbine Operating at High Pressure Ratios Reaching Choked Flow," Energies, MDPI, vol. 15(24), pages 1-30, December.
    7. Simon Cornée, 2014. "Soft Information and Default Prediction in Cooperative and Social Banks," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(1), pages 89-103, June.
    8. Zhou, Fanyin & Fu, Lijun & Li, Zhiyong & Xu, Jiawei, 2022. "The recurrence of financial distress: A survival analysis," International Journal of Forecasting, Elsevier, vol. 38(3), pages 1100-1115.
    9. Modina, Michele & Pietrovito, Filomena & Gallucci, Carmen & Formisano, Vincenzo, 2023. "Predicting SMEs’ default risk: Evidence from bank-firm relationship data," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 254-268.
    10. Poledrini Simone & Searing Elizabeth A. M. & Montrone Alessandro, 2022. "A Model for Directing and Modulating Public Interventions in Social Enterprises," Nonprofit Policy Forum, De Gruyter, vol. 13(4), pages 307-332, October.
    11. Fougère, D. & Golfier, C. & Horny, G. & Kremp, E., 2013. "What has been the impact of the 2008 crisis on firms’ default? (in French)," Working papers 463, Banque de France.
    12. Jie Sun & Jie Li & Hamido Fujita & Wenguo Ai, 2023. "Multiclass financial distress prediction based on one‐versus‐one decomposition integrated with improved decision‐directed acyclic graph," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 42(5), pages 1167-1186, August.
    13. Jorge Vieira da Costa Jr & Alfredo Sarlo Neto & Andrea Bispo da Silva, 2016. "Balance sheet classification of compound financial instruments and the judgment of securities market analysts," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 4(5), pages 37-54, October.
    14. Shai Levi & Benjamin Segal, 2015. "The Impact of Debt-Equity Reporting Classifications on the Firm's Decision to Issue Hybrid Securities," European Accounting Review, Taylor & Francis Journals, vol. 24(4), pages 801-822, December.
    15. Chiara Pederzoli & Grid Thoma & Costanza Torricelli, 2013. "Modelling Credit Risk for Innovative SMEs: the Role of Innovation Measures," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(1), pages 111-129, August.
    16. Guido Max Mantovani & Gregory Gadzinski, 2022. "How to Rate the Financial Performance of Private Companies? A Tailored Integrated Rating Methodology Applied to North-Eastern Italian Districts," JRFM, MDPI, vol. 15(11), pages 1-18, October.
    17. Saara Tamminen, 2017. "Regional effects or none? Firms' profitability during the Great Recession in Finland," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 33-59, March.
    18. Enrico Supino & Nicola Piras, 2022. "Le performance dei modelli di credit scoring in contesti di forte instabilit? macroeconomica: il ruolo delle Reti Neurali Artificiali," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2), pages 41-61.
    19. Adriana Csikosova & Maria Janoskova & Katarina Culkova, 2020. "Application of Discriminant Analysis for Avoiding the Risk of Quarry Operation Failure," JRFM, MDPI, vol. 13(10), pages 1-14, September.
    20. Haoming Wang & Xiangdong Liu, 2021. "Undersampling bankruptcy prediction: Taiwan bankruptcy data," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:12:p:2107-:d:841262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.