Financial performance: Difference between revisions
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'''Financial performance''' is generally defined as the ability of a company to raise and allocate funds within a certain time period. This performance is determined, among other things, on the basis of key performance indicators relating to capitalisation, liquidity, solvency, efficiencies and profitability of the company. Financial performance also indicates the ability of a company to make efficient use of the resources and assets that are available to it. Cash flow information, or information from the balance sheet, income statement and statement of changes in capital, serves as the primary source for determining financial performance and, consequently, also as a foundation for the management's decision-making process. (Fatihudin 2018, S. 553) | |||
==Financial performance indicators== | |||
Revision as of 18:01, 7 November 2022
Financial performance is generally defined as the ability of a company to raise and allocate funds within a certain time period. This performance is determined, among other things, on the basis of key performance indicators relating to capitalisation, liquidity, solvency, efficiencies and profitability of the company. Financial performance also indicates the ability of a company to make efficient use of the resources and assets that are available to it. Cash flow information, or information from the balance sheet, income statement and statement of changes in capital, serves as the primary source for determining financial performance and, consequently, also as a foundation for the management's decision-making process. (Fatihudin 2018, S. 553)
