Business financial performance indicators

Abstract

The goal of any business entity is to ensure the success of its activities, financial stability and durability and long-term business continuity. Achieving these objectives depends on a number of influential factors, both internal and external. In order to examine the level of achievement of these objectives certain indicators of success, stability and trends that point to the possibility of long-term business should be measured and expressed. Those indicators can be financial and non-financial in nature, or quantitatively and qualitatively expressed. The subject of this paper are financial indicators that help to measure and review business performance and are in the function of providing information needed for effective management of the company. These indicators primarily include indicators of cost effectiveness, profitability and indicators of investment security. In addition to these literature recognizes also activities that indicate the success and stability of the business. The need for measuring and quantifying business performance resulted from analytical activities which are a product of financial indicators that indicate the business accomplishments of enterprise.