Cloud Computing and Data Mining Application in Enterprise Profitability Analysis Based on the Perspective of Cash Flow

Headnote

Abstract: With the development of network technology, data mining based on cloud computing has become a key technology to explore effective data. In this paper, the author research on the cloud computing and data mining application in enterprise profitability based on the perspective of cash flow. Based on the data in the cash flow statement, we detect and maintain the cash flow indicators, and can accurately assess the profitability of the enterprise. According to the enterprise data from 2007-2015, we analyze the level of corporate profits, we identify the various problems existing in the growth of enterprises, and find out the solutions.

Keywords: Cloud computing, Enterprise profitability, Data mining, Cash flow

1.Introduction

Data mining is a necessary part of knowledge discovery in database, and database knowledge discovery is useful information for converting the raw information. The development process of data mining draws on the results of many other fields, including artificial intelligence, machine learning (Cao, 2015; Gu, 2015; Ferreira, et al. 2015). The rapid expansion of the amount of data makes the demand for massive data mining increase day by day. Traditional data mining often takes a lot of time to deal with massive data mining, and the cloud computing provides an effective way to solve this problem (Gao, 2015; Fan,2015). The computational task of massive data mining is very complex, which requires high computing power, and the cloud computing can provide this kind of computing power, and it can effectively organize the storage of massive data.

Profit is the main objective of modern enterprise management and promote enterprise long-term business growth and material basis, a corporate earnings level is long-term business performance evaluation index of the enterprise (Zhao, 2015; Zhang, 2015), but also is an important indicator of the long-term business development ability, strong profitability of the enterprise has obvious advantages, it can increase the survival ability of the enterprise and the future development of the ability to have weak profitability of the enterprises, the enterprises are at a disadvantage in the future long-term development(Mora, 2014; Shen, 2015). Therefore, the analysis of the profitability of the financial analysis is a point, so, how to correctly and accurately assess the profitability is essential. Stakeholder makes the corresponding financial decisions, in order to achieve the accuracy and practicality of decision-making, profitability analysis can be used as an important basis for decision-making (Zhang,2016).

In this paper, detailed and accurate information to specific enterprises listed after nearly nine years of public data sample, in 2007 to 2015 the enterprise accurate data based method using data statistics and induction, the enterprise nearly nine years of data are calculated by six on the profitability ratio calculation of enterprises the profit level in detail, and the influencing factors analysis of enterprise annual profit level, in the final conclusion that the enterprise based on the existing problems, and puts forward some feasible measures to solve business problems, to avoid risks in a timely manner, to make a solution to, for the long-term stability in the State Development in the future.

2.Data mining based on cloud computing

2.1.Cloud computing

Cloud computing is the one provided by the network defined by the economic boundary distributed system, system according to the external needs of users from an abstract, virtual, dynamic resource pool to provide users with computing power, storage, network and other services. Cloud computing is a special distributed computing system, the system with the traditional system is different: it is scalable and extensible; cloud is encapsulated in an abstract entity, and provides different levels of service to the user. Its computational boundary is determined by economic principles rather than technical constraints; services can be configured and provided as required. In the context of the Internet era, the government, research institutions and industry giants have quickly began to use cloud computing to solve the growing problem of computing and storage.

There are three main reasons for the emergence and development of cloud computing: 1) Rapidly reduce the hardware cost, increase the computing power and storage capacity of the emergence and development of multi-core architecture and composed of thousands of tens of thousands of computing units of modern supercomputers. 2) Scientific field processing and Simulation of the operation of the data, the Internet field release and collection of data, are showing an exponential growth. 3) The rise of Web2.0 technology as the core of the software services.

Cloud computing applications in the description of the application of the Internet is the use of access to the. Cloud applications using massive data centers and powerful network servers to run network programs and network services. Any one user can access such a cloud computing application via the Internet and browser. From these we can see that on the one hand, cloud computing is equivalent to infrastructure, which can be used to construct the application; on the other hand, it can also describe the application of cloud computing based on these. Cloud computing provides users with a super high computing power and storage access to large companies, and users usually access these resources through Web services. One of the goals of cloud computing is to hide the complexity of the management of the computer infrastructure. At the same time, the cloud platform to provide high reliability, high performance, high scalability, and to be able to configure their own services, and these services are much cheaper than their own to buy hardware.

2.2.Data mining

Artificial neural network is composed of basic components of a large number of simple interconnected neurons, and Simulation of the human brain information processing, information processing and parallel non - linear transformation of complex network system of artificial neural network to process information through the information on the neural network training samples, it is the human brain's memory and identification ability. Complete all kinds of information processing function of the artificial neural network has good adaptive self-learning, associative memory, parallel processing and non - linear transformation can

In the case of the defect of the sample and the parameter drift, the stability of the output can be guaranteed. The characteristics of artificial neural network to simulate the human intelligence, attention and extensive academic research, has been successfully applied in many fields, such as data mining, pattern recognition, image processing, virtual reality, intelligent control, optimization calculation etc.. According to the topology and operation mode of the network, a neural network model for feedforward multilayer network model, feedback recursive network model, and random network model. The application of more mature in pattern recognition model is the multilayer feedforward network B type P back propagation model of BP network is a typical multi-layer network is divided into input layer, hidden layer and output layer, with full interconnection between layers.

The application of neural network in data mining is not optimistic, the main reason is that the neural network has the defects of complex structure, can explain the difference, long training time. But the noise data of high capacity and low error rate advantages, as well as a variety of network training algorithm is proposed and the subsequent optimization, especially the extraction the algorithm of various network pruning algorithms and rules are put forward and perfect, the application of neural network in data mining more and more favored by the majority of users. Data preparation is to be defined, data mining and processing, in order to make it adapt to the specific method of data mining. Data preparation is an important first step in the process of data mining, the data mining plays an important role in the process. It mainly includes the following four processes:

1. Data cleaning: data cleaning is to fill the vacancy in the data, the elimination of noise data, the data to correct inconsistencies in the data.

2. Data selection: data selection is to select the data columns and rows for the data mining.

3. Data preprocessing: data preprocessing is to enhance the selection of clean data processing.

4. Data representation: data representation is the data after preprocessing the data into a form acceptable algorithm based on neural network and data mining. Can only handle numerical data based on neural network and data mining, so it is necessary to sign data into numerical data.

3.Enterprise profitability analysis

3.1. Profitability indicators and sample selection and overview

Analysis of the income situation, only by the accrual accounting index system is the judgment is not comprehensive, if the enterprises want to truly complete the performance, but also on the basis of profitability analysis. It not only avoids the accrual defects, but also can communicate with other relevant data in the table to communicate and test, more able to respond to the overall profitability of the enterprise.

* Profit cash ratio: this index shows that each unit net profit of net inflows, directly to the enterprise ability to achieve net profit. If the ratio is larger, then the profit situation is better. Cash ratio is equal to 1, is the state of the balance of profitability of the enterprise. So when the profit of cash ratio is greater than 1, the general situation is that the amount of money flowing into the enterprise business activities more, while the net profit is less, then the enterprise has a lot of net profit as the next business. And the profit cash ratio is less than 1, it indicates that the enterprise does not have enough funds as the backing, the next business will have greater difficulties. Even in a state of profit, and occasionally or often have a lack of funds, making the situation is not high profit. Serious cases, but also led to the bankruptcy of enterprises.

* Asset cash return: this index is an objective evaluation of the efficiency of the use of assets, and the speed of the speed of turnover, is the capital of its own funds to produce a kind of evaluation. If the ratio is greater, the proportion of funds recovered from the outflow of funds, the company received more cash, less cash outflow, the loss of the corresponding enterprises will be reduced. If the ratio is lower, then the enterprise losses may be greater, for the enterprise after the development of the business has a negative impact.

* Net assets return on cash: specify the enterprises in the capital level aspects of the situation, if the ratio is higher, enterprise received more cash, cash outflow, corresponding enterprises will reduce the losses, if the ratio is low, then the business losses may be larger, is not conducive to enterprise development.

* Cash gross margin: this index is an effective supplement for sales of zero interest rates, the accrual case can be analyzed and more accurate calculation, found deficiencies, such as artificially inflated phenomenon, can be modified timely.

* Net sales rate: this indicator shows the current situation, the cash recovery phenomenon. Under normal circumstances, the net sales ratio is generally 1. However, in practical operation, there may be a credit phenomenon, although the sales income is more, but the actual flow of enterprise funds rarely, therefore, the index is less than 1. If the ratio is close to 1, it shows that the rotation of corporate funds faster, less amount of accounts receivable, the more powerful the ability to explain. If the ratio is greater than 1, the enterprise will have a lot of cash vacant, so that more and more difficult to raise funds, the extent of the loss of bad debts is also growing.

* Operating cash ratio: if the ratio is higher, it shows that the level of corporate funds to create a stronger, better financial situation, its solvency and financing capacity is also strong. If the index value is low, it shows that the level of corporate funds to create is weak, the financial situation of enterprises in the more vulnerable, the solvency is weak, it will not conducive to the future development

3.2.Enterprise profitability analysis

The following conclusions can be drawn from the corporate statements. Operating cash flow: net cash flow in 2008 than in 2007 decreased by 383 million 590 thousand yuan, mainly due to the 08 year of the global economic crisis spread and cause service reduced, gradually increase the variety of advertising media and product costs, so that the net enterprises continue to decrease, while the enterprise accounts receivable other receivables, inventory, business taxes and surcharges, selling expenses, administrative expenses, a slight increase of fixed assets is also one of the reasons causing the current net cash flow from operating activities decreased. In 2009 than in 2008 and the rapid growth of 534 million 50 thousand yuan, growth this year is about 1.9 times a year, is a great value in recent years enterprise net cash flow, mainly produce a variety of positive policy in 2009 in response to the economic crisis of the country launched under the action of the effect, such as effects of stimulation of domestic consumption policy. The enterprise in the sale of goods and services in terms of the capital increase, so enterprises in the active policy under the guidance of the level of net profit rose sharply. However, from 2009 to 2012 the company's net decline, and even negative in 2012, is the lowest value in the past few years, the net cash flow in 2012 decreased by 857 million 560 thousand yuan over the previous year. Is mainly due to the support of national policies related to exit, rising oil prices, the reduction in operating income, operating costs increased, it is difficult to improve in the short period of service, so that the current corporate cash inflows than outflows. From 2012 to 2015 the net cash flow of enterprises in the growth phase, and every year was two times the growth trend, mainly due to the increase in the amount of funds received by the enterprise; making the current cash inflow is higher than the amount of outflow.

1. An overview of the profit and cash ratio

From table 1, net profit: 2007 to 2008 net profit fell 73 million 280 thousand yuan, which is mainly due to the impact of the global economic crisis in 2008 led to a decline in net profit. 2009 than in 2008 net profit rose 198 million 140 thousand yuan. This is the result of enterprises to respond to the economic crisis to make a variety of adjustments, but also in the country under the guidance of a variety of positive policies, making a substantial rise in net profit level. But from 2010 to 2011 the enterprise net profit fell 125 million 460 thousand yuan, it is understood that in 2011 the enterprise growth rate is lower than the industry average speed in 2011 is the main exit of government support policies, and the implementation of the policy of the government's negative influence and the enterprise cost and expense increase caused. 2011 to 2014 net profit is up and down in the state, but the volatility is not very large, the net profit for several years to achieve a more stable, not much impact. 2015 net profit increased by 68 million 120 thousand yuan in 2014, which is the largest since 2010 to achieve net profit, but still no large amount of 2009.

2. The analysis of the cash return on corporate assets

It can be learned that the average total assets: 2007 to 2015 average net asset volatility is increased, and the annual fluctuation range is not very large, which belongs to the normal operating range of enterprises. Cash return on 2008 was 4.45% lower than last year, 2009 growth of 6.04% over the previous year, 2009 is the maximum value of nearly nine years, the stage of enterprise asset turnover rate is the fastest, has nearly nine years of the best results. From 2009 to 2012 in the decline stage, especially after two years the biggest decline in 2012, asset cash returns have been low to -1.8%, indicating that companies at this stage the total assets cash generating ability is more and more weak, asset turnover slowed down, the reason is that in 2012 the enterprise accounts receivable increased, the assets turnover rate slow. From 2012 to 2015 the asset cash return rate began to significantly improve, after 2012, the company's capital turnover rate is fast, the impact on the enterprise development.

3.Analysis on the cash recovery rate of enterprise's net assets

Can see that the average net assets increased from 2007 to 2015, the average net assets has been in the stage, in this case that the balance sheet of the total assets and equity in a rising stage in 2015, nearly two times higher than in 2007. 2008 than in 2007 reduced by 11.48%, the main reason is the excessive amount of cash outflow arising from business activities, this phenomenon may be the rise in raw material prices, wages and salaries of workers and a variety of taxes and fees increased. The ratio in 2009 was up 9.85% over the previous year, because of the decrease in the amount of money flowing out. From 2009 to 2012, the ratio of enterprises continued to decline in the stage, even in 2012, the negative -3.06%, the reason is the continuous rise in accounts receivable and management costs, enterprises need to pay more cash, so as to cause the net cash flow reduction. 2012 to 2015 is in a rising stage, the main reason for the rise is to reduce the loss of enterprises to accelerate the rotation of funds, making enterprise receivables reduced. Generally speaking, the ability of the enterprise to obtain cash is more unstable.

4.Corporate cash gross margin analysis

Cash inflow from operating activities: a gradual decrease from 2010 to 2007. In 2011 this year than last year rose 132 million 960 thousand yuan, than last year in 2012 fell 581 million 750 thousand yuan, in 2013 than last year rose 764 million 60 thousand yuan from 2013 to 2015, the volatility is not big, but on the whole, from 2007 to 2015 operating cash inflow is the decreasing trend that enterprises to provide better service to the young. May also be related to the rate of small enterprise's market share. Cash: 2008 gross margin was 6.33% lower than in 2007, 2008 net operating flow not only declined slightly, even operating cash inflows also decreased in a large range is, the most is mainly due to the global economic crisis in 2008 and continued to rise to reduce the lead to service, and publicity costs and product research expenses in large scale enterprise from capital outflow, so the net operating flow is also reduced, resulting in a sharp decline in the ratio of 2008. 2009 than in 2008 increased by 15.39% in 2009, the operating cash flow of large growth and outflow of a slight decrease, or the expansion of business scale, operating costs due to reduced. 2009 to 2012 continued to reduce, even in 2012 the negative value of -4.97%, the lowest value for the enterprise in the past nine years, is due to the negative value of the net cash flow in 2012 due to. 2012 to 2015 continued substantial growth in 2015 operating cash flow is two times in 2014, is the largest in recent years, with the decrease in operating costs and operating cash outflow has a great relationship.

5.Enterprise sales net cash ratio analysis

Sales revenue: 2007 to 2015 sales revenue is gradually reduced, may be due to increased competition, leading to the reduction of business services, or inaccurate brand positioning. Sales net cash ratio: in 2008 than in 2007 decreased by 5.82%, which shows the current main business capital rotation is poor. 2009 than in 2008 increased by 20.77%, because in 2009 than in 2008, accounts receivable decreased by nearly two times, which shows the company in 2009 to accelerate the rotation of the capital to get good results, 2010 than the previous year decreased by 7.77%, indicating that the company's accounts receivable increased more, so the slow speed of capital. 2012 than in 2011 decreased by 30.56%, and in 2012 there is a negative value of -6%, the lowest value for the enterprise sales of nearly nine years, the rate of return of funds to achieve the slowest pace in recent years. From 2013 to 2015 showed a significant upward trend, reflecting the return of funds quickly, a large number of accounts receivable decreased.

4.Conclusion

4.1. The external problems in the analysis of the profitability of the enterprise

1. The impact of other competitors: there are more and more competitors, in order to promote consumption, to achieve greater market share, competitors have to reduce prices and preferential activities.

2. The impact of the Internet on business operations: the rapid development of the Internet economy, the traditional industry has been hit, but also a serious impact on the business model of the original, innovative awareness and management ideas. With the breakthrough of the information technology and the extensive penetration of the Internet, enterprises have suffered from the traditional living space, and must compete for market share. And the company has to be familiar with the knowledge of the management of the Internet is less. The following conclusions can be drawn from the corporate statements. Operating cash flow: net cash flow in 2008 than in 2007 decreased by 383 million 590 thousand yuan, mainly

4.2.Internal problems in the analysis of the profitability of enterprises

1. Enterprise customer service system is not perfect: Although the enterprise has a comprehensive service system, but the customer service system is not perfect, cannot find their own customer service website on the Internet, telephone customer service contact less, to solve the problem of the level is less, no more comprehensive consumer complaints channel. Therefore, it is difficult to meet the requirements of customers, and now more customers would prefer to choose a high price of high quality service.

2. The cost is too high: because of the size of the enterprise keeps growing, the required labour is also more and more, and now the biggest problem is less labour, so labour shortages that labour costs continued to rise, there are various operating and energy costs are rising, so enterprises pay more and more cash, which is not conducive to the rise corporate profits.

4.3.Enterprise research proposal

1. Enterprises should innovate brand management: to strengthen brand management, create brand effect, can effectively maintain the brand and brand reputation degree and beautification degree. Optimization of brand communication, in the traditional channels of communication, it should also be developed and use new media, such as the Internet and other media, publicity and promotion of enterprises, should be more good results.

2. Enterprises should follow the Internet policy: follow the Internet policy, keep up with the pace of Internet business model reform, and create a new cultural consciousness and strengthen the management of ideas, and actively introduce advanced personnel understand the Internet knowledge, for internal staff but also for Internet training, make full use of the convenience of the Internet development.

3. Enterprises should enhance the management efficiency: the development of human resources strategy to business transformation objectives, optimize labor, reduce labor costs, and actively introduce advanced talents, and external recruitment platform communication and cooperation, focus on exploring the internal talent, make enterprise internal personnel loss, pay attention to the cultivation of the quality of existing staff and knowledge, to prepare for the longterm development of the enterprise, the implementation of the personnel system upgrade. And enhance the management level of enterprises is not easy, should be a systemic, long-term, dynamic and continuous problems, so cannot be quick success, impetuous reckless, there should be a complete strategic framework and ideas, and gradually promote firmly distinguish the order of priority.

4. Enterprises should seize the remote market: enterprises should seize the market in a timely manner, and actively carry out publicity and promotion. Generally speaking, if the enterprise occupies a large proportion of the market share, and can correct the market positioning and promotion, the enterprise has a longterm healthy development should not be a problem. Generally speaking, because of a good market share, and to develop a flexible marketing strategy, long-term development of enterprises should not cause any problems.

5. Enterprises should promote the upgrading of Technology: it is very important to improve their innovation ability, innovation ability is the motive force of the development of a long-term survival and vitality of enterprises, enterprises should improve the corresponding technology, can not only stay in the basic development of the blind. The enterprise should take innovation as the main work in the next operation, adhere to stable and not be slow, to seize market opportunities, promote reform and innovation, improve the industrial layout, optimize the allocation of factors, to achieve a good start.

Acknowledgments

The work of this paper is supported by National Natural Science Foundation Youth Project (No. 41601136); The training plan of the special fund for basic scientific research business expenses of the central university: National strategy and management research of national defense science and technology industry (HEUCFZ1607); Project of Natural Science Foundation of Heilongjiang province: Research on the core competence of high end equipment manufacturing enterprises in China (G201405)

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