I am looking at Revlon's 10K and see stockholder's equity is negative.What motivates Revlon's negative stockholder equity? Why does it make sense for them to operate like this?
What motivates Revlon's negative stockholder equity?
Without digging into too much detail, they have had negative net income for the past two years, mostly driven by higher SG&A expenses (probably advertising and other marketing expenses)
Why does it make sense for them to operate like this?
Sometimes companies run at a loss because they know (or hope) that they are building a foundation for products or services that will eventually become profitable. Or, the market is changing around them, and they are trying to survive, or just giving up and dying. I have no idea which in this case.