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    Assignment Weng 5

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    dampalit malabon
    Financial performance is a measure of how well a firm uses its assets to generate revenue and its overall financial health. It is used by analysts and investors to compare companies. Financial performance can be measured in various ways, including revenue, operating income, cash flow, margins, and debt levels. Financial statements like the balance sheet, income statement, and cash flow statement provide key information about a company's financial performance by showing assets and liabilities, revenues and expenses, and cash flows.

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    Assignment Weng 5

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    dampalit malabon
    33 views1 page
    Financial performance is a measure of how well a firm uses its assets to generate revenue and its overall financial health. It is used by analysts and investors to compare companies. Financial performance can be measured in various ways, including revenue, operating income, cash flow, margins, and debt levels. Financial statements like the balance sheet, income statement, and cash flow statement provide key information about a company's financial performance by showing assets and liabilities, revenues and expenses, and cash flows.

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    Financial performance is a measure of how well a firm uses its assets to generate revenue and its overall financial health. It is used by analysts and investors to compare companies. Financial performance can be measured in various ways, including revenue, operating income, cash flow, margins, and debt levels. Financial statements like the balance sheet, income statement, and cash flow statement provide key information about a company's financial performance by showing assets and liabilities, revenues and expenses, and cash flows.

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    33 views1 page

    Assignment Weng 5

    Uploaded by

    dampalit malabon
    Financial performance is a measure of how well a firm uses its assets to generate revenue and its overall financial health. It is used by analysts and investors to compare companies. Financial performance can be measured in various ways, including revenue, operating income, cash flow, margins, and debt levels. Financial statements like the balance sheet, income statement, and cash flow statement provide key information about a company's financial performance by showing assets and liabilities, revenues and expenses, and cash flows.

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    WHAT IS FINANCIAL PERFORMANCE?

    Financial performance is a subjective measure of how well a firm can use assets from its
    primary mode of business and generate revenues. This term is also used as a general measure
    of a firms overall financial health over a given period. Analysts and investors use financial
    performance to compare similar firms across the same industry or to compare industries or
    sectors in aggregate.

    UNDERSTANDING FINANCIAL PERFORMANCE

    There are many ways to measure financial performance but all measure should be taken in
    aggregate. Line items such as revenue from operations operating income or cash flow from
    operations can be used as well as total unit sales. Furthermore the analyst or investor may
    wish to look deeper into financial statements and seek out margin growth rates or any
    declining debt.

    There are many stakeholders in a company, including trade creditors, bondholders,


    investors, employee and management. Each group has its own interest in tracking the financial
    performance of a company. Analysts learn about financial performance from data published
    by the company in form 10k form. The purpose of the report is to provide stakeholders with
    accurate and reliable financial statements that provide an overview of the company’s financial
    performance. In addition company leaders audit and sign these statements and other
    disclosure documents. In this way the 10 k represents the most comprehensive source of
    information on financial performance made available to investors annually. Included in the 10k
    are three financial statements: the balance sheet, the income statement and the cash flow
    statement.

    The financial performance identifies how well a company generates revenues and
    manages its assets, liabilities, and the financial interests of its stakeholders.

    The Balance Sheet is a snapshot of the financial balances of an organization. It provides an


    overview of how well the company manages its assets and liabilities. Analysts can find
    information about long-term vs. short-term debt on the balance sheet. They can also find
    information about what kind of assets the company owns and what percentage of assets are
    financed with liabilities vs. stockholder’s equity.

    The Income Statement provides a summary of operations for the entire year. The income
    statement starts with sales or revenues and ends with net income. Also referred to as the
    profit and loss statement the income statement provides the gross profit margin, the cost of
    goods sold, operating profit margin and net profit margin. It also provides an overview of the
    number of shares outstanding as well as comparison against prior year performance.

    The Cash Flow Statement is a combination of both the income statement and the balance
    sheet. For some analysts the cash flow statement is the most important financial statement
    because it provides reconciliation between net income and cash flow from operations,
    investing and financing.

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