Abstract:

The purpose of this study is to analyze the use of equity in the process of assessing the company’s performance by correlating with the position and financial performance indicators of the different reporting periods. This research presents some theoretical and practical aspects of the role of equity in the process of assessing the performance of companies in the metallurgical industry whose values are traded on a regulated market. Previous studies have highlighted the determinant influence of equity on the company performance evaluation process, which is why we consider that the analysis of the correlation between equity and the overall result, respectively between equity and turnover, is grounded. In order to achieve the objectives of this study, two research assumptions have been tested: the overall result of the company is influenced by the value of the equity; the increase of the company’s turnover implies an increase of the own capital. The results of the research were obtained on the basis of the analysis carried out at the level of a Romanian company in the metallurgical industry sector, whose shares are traded on the Bucharest Stock Exchange. For this company, three established indicators regarding position and financial performance were analyzed: overall result, turnover and equity. It can be noticed that in the context of an unstable economic environment, improving performance is of particular importance in the concern of managers of Romanian companies, and not only.