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The Relevance of Measuring Performance Using Financial Statements

Andreea Paula Dumitru ()
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Andreea Paula Dumitru: Faculty of Economics and Business Administration, „Nicolae Titulescu” University of Bucharest

Global Economic Observer, 2021, vol. 9, issue 1, 124-131

Abstract: When we evaluate the performance of companies that seek ways to measure the financial and economic aspects of decisions relating to investments, operations and finance. Our approach proposes an analysis of financial performance based on the financial summary. These are the most accessible source of data, although not the most “economic” way of presenting such data. We present also, and most important metrics that can contribute to financial performance. As we will see, there is a wide variety of solutions, and measurements of individual reports, some other purely financial and economic content. No indicator or measure will be considered predominant. We will focus on relationships and indicators, which allow measurement of past performance and estimating future performance, we emphasize the significance, and inherent limitations.

Keywords: performance measurement; indicators; financial statements; profitability (search for similar items in EconPapers)
Date: 2021-06
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Persistent link: https://EconPapers.repec.org/RePEc:ntu:ntugeo:vol9-iss1-124-131

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