RELATIONSHIP BETWEEN EARNING POWER, FINANCIAL RATIOS AND BRAND PERCEPTION

Abstract

Purpose: This study aims to find out the impact of different financial ratios like current ratio, net profit margin, total asset turnover ratio on ROE. Moreover it also aims to find out impact of marketing expenses on return on equity. It is very important to know relationship of these factors on return on equity so that companies make their decision making based on the results of this research. For more clear understanding research has been done about companies from a specific industry as different industries would have different conditions thus different results. Research method: For industry analysis 10 years data from 2010 to 2019 ofthree companies from textile industry were chosen and one company for an individual analysis by using least square method. And for the second part of research regression test has been run through SPSS. Data was collected from financial statements of company which are made available on internet by the companies on their official website.