3

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?

2
  • 1
    I'm not going through several dozen pages of SEC filing. Can you be more specific as to what you're referring to? Nov 21, 2018 at 16:40
  • Hi @Acccumulation, apologies. If you check the balance sheet of Revlon on the 10k or morningstar or wherever, you will see that they have negative stockholder equity! I am asking about why that's the case and why does it make sense for them to operate like this. Let me know if this clarifies it.
    – TBM
    Nov 25, 2018 at 11:52

1 Answer 1

2

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.

0

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .