Determinant Factors of Company Performance in Under Armour Inc.

Abstract

Company performance is one of the most important aspect in an organization. It is important for an organization to be a profitable and survive over time. The image of a company is based on their performance. A bad company performance will lose to attract the shareholder as shareholder is one of the profit resources. Company performance is determined by their profitability. The aim of this research was to determine the internal and external factors towards company performance on Under Armour Inc in United States. The analysis shows that firm specific factor (quick ratio, debt ratio, average collection period, operational ratio, operating margin, and corporate governance index (CGI) and macro-economic factor (gross domestic product (GDP), inflation, unemployment rate, exchange rate and Beta.) influence the profitability of the firm. This study suggest that the firm should do well in managing their shareholders’ equity to maximize shareholder’ wealth and generate profit to company by establishing a clear information regarding how and where the firm invest the shareholder’s money and complies more towards corporate governance elements such as transparency, fairness, accountability, independence and sustainability in the firm.