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

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  • LAM, ALEXIS LAM MAN YEE

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.

Suggested Citation

  • Lam, Alexis Lam Man Yee, 2019. "An analysis of the effect between firm's performance and determinant of liquidity ratio of Revlon Incorporation in cosmetic industry," MPRA Paper 97281, University Library of Munich, Germany, revised 28 Nov 2019.
    • Handle: RePEc:pra:mprapa:97281
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    References listed on IDEAS

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    1. Bauer, Rob & Frijns, Bart & Otten, Rogér & Tourani-Rad, Alireza, 2008. "The impact of corporate governance on corporate performance: Evidence from Japan," Pacific-Basin Finance Journal, Elsevier, vol. 16(3), pages 236-251, June.
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    3. Lang, William W. & Jagtiani, Julapa, 2010. "The Mortgage Financial Crises: The Role of Credit Risk Management and Corporate Governance," Working Papers 10-12, University of Pennsylvania, Wharton School, Weiss Center.
    4. William Lang & Julapa Jagtiani, 2010. "The Mortgage and Financial Crises: The Role of Credit Risk Management and Corporate Governance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(3), pages 295-316, September.
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    More about this item

    Keywords

    KEYWORD: ROA; CURRENT RATIO; CORPORATE GOVERNANCE; COMPANY PERFORMANCE;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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