Analysis of internal factor (Operating Margin) affect the Coty Incorporated Performance

Fara Izzatie Abdullah

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aim to elaborate some most importance information regarding Coty Incorporation‘s performance and its determinant. This study been research from the company’s annual report and other trusted resources that relate to the company for year 2014- 2018. The purpose is to know what internal and external factor that affect the company performance or more specific dependable variable. The internal factor consist of current ratio, quick ratio, average collection period, debt to income, operational ratio, operating margin and corporate governance index. Meanwhile for the external factor include the GDP, inflation, interest change, exchange rate and standard deviation. The method that been used to collect data is Statistical Package for the Social Science (SPSS) version 25. Every company been running to increase sale and profit, same goes to Coty Incorporation. Hence, this study using Return of Ratio (ROA) method as its dependable variable to identify how well the company can convert its investment in asset into profit. This method the most efficiency to the management of company and the investor in that company to see it. The higher this ratio, the higher company will earn the profit. After been analysis and interpret the data in SPSS, the study found the internal factor which is Operating Margin give a strong influence to asset of Coty’s Incorporated. As already know, the operating margin is amount revenue that left over after using all operating cost. Its mean the higher amount been left over, the higher cover for non-operating costs such as interest expenses.

Keywords: Corporate Governance; Return of Asset (ROA); Operating Margin (OM); Average Collection Period (ACP); Standard deviation (search for similar items in EconPapers)
JEL-codes: G3 G32 O16 (search for similar items in EconPapers)
Date: 2019-11-18, Revised 2019-11-28
New Economics Papers: this item is included in nep-cfn
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