Financial Performance Metrics

Financial performance metrics are measurements used to assess a company's financial health and effectiveness in generating profit. Key metrics include revenue (total income), profit margin (percentage of revenue that becomes profit), return on investment (how much profit is made relative to the investment), and earnings per share (profit allocated to each share of stock). These metrics help investors, managers, and stakeholders make informed decisions about the company’s performance, growth potential, and operational efficiency. By analyzing these figures, one can gauge whether a company is thriving or facing challenges.