An analysis of the effect between firm's performance and determinant of liquidity ratio of Revlon Incorporation in cosmetic industry

Alexis Lam Man Yee Lam

MPRA Paper from University Library of Munich, Germany

Abstract: The reason why I conduct this analysis is to identify the corporate governance and company performance of the Revlon Incorporation using the dependent variable (ROA) and plus the independent variable (current ratio) involve the internal factor and external factor. The data is collected through the Revlon Incorporation’s annual report from the year of 2014 until 2018. The variable that are using during this analysis which is dependent variable and independent variable using ROA and current ratio for the purpose to analyze the Revlon Incorporation’s corporate governance and company performance. Return on assets (ROA) is prove of how profitable of a certain company about their total assets. ROA help manager, investor on how to conduct an efficient of a company’s management to generate earnings. Since Revlon Incorporation company asset’s main and important purpose is to earn huge amount of profits, the Revlon Incorporation is manage to manage successfully in converting the investments from assets into profits. The ROA is a profit to the Revlon Incorporation from the investment when the Revlon Incorporation’s assets are the most imperative investment for every companies in the world. A higher the Return On Assets prove that the management of Revlon Incorporation is using the Revlon Incorporation company’s assets to make more profit. The current ratio is the medium to help in measuring for the liquidity which is the higher the ROA, the higher the current ratio to solve the company’s financial obligations.

Keywords: KEYWORD: ROA; CURRENT RATIO; CORPORATE GOVERNANCE; COMPANY PERFORMANCE (search for similar items in EconPapers)
JEL-codes: G3 G32 O16 (search for similar items in EconPapers)
Date: 2019-11-18, Revised 2019-11-28
New Economics Papers: this item is included in nep-cfn
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