Financial Performance Measurement

Financial performance measurement involves evaluating a company's financial health and success by analyzing key financial data such as profits, revenue, expenses, and assets. It helps assess how well the company is doing financially, identify strengths and weaknesses, and inform decision-making. Common tools include financial ratios, profit margins, and return on investment. This process provides stakeholders, like investors and management, with insights into the company's efficiency, profitability, and overall financial stability, enabling them to make informed choices about future actions and strategies.