Definition of Financial performance:
Analysts and investors use financial performance to compare similar firms across the same industry or to compare industries or sectors in aggregate.
Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm's overall financial health over a given period.
Measuring the results of a firms policies and operations in monetary terms. These results are reflected in the firms return on investment, return on assets, value added, etc.
How to use Financial performance in a sentence?
- No single measure should be used to define the financial performance of a firm.
- Often, the financial statements (e.g., balance sheet, income statement, and statement of cash flows) of a company are used to measure the financial performance of a firm.
Meaning of Financial performance & Financial performance Definition