IMPACT OF KEY MACROECONOMIC FACTORS ON THE PROFITABILITY OF BIG ORGANIZATIONS

Abstract

This research investigates the relationship between macroeconomic factors and profitability of companies, considering the company level factors of financial performance: gross margin, operating margin, EBITDA margin and ROA. Drawing upon the theoretical frameworks, empirical analyses and econometrical model, the study explores multifaceted dynamics of macroeconomic-firm nexus of the biggest 16 companies - drivers of modern US economy. Findings reveal significant relationships between macroeconomic factors such as exchange rate, inflation and corporate profit, highlighting company response to macro-level changes. Practical implications for financial managers are discussed, emphasizing the importance of considering macroeconomic conditions in decision making processes. Overall, this article contributes to the understanding of macroeconomic-firm nexus and provides insights, which should be further developed.