what is financial performance ? give a long answer & list of objective of performance financing?
Answers
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 firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation.
There are many different stakeholders in a company, including trade creditors, bond holders, investors, employees 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, also known as the annual report. The 10K is a required legal document that must be published by all public companies. 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, these statements are audited and signed by the leadership of the company along with a number of other disclosure documents. In this way, the 10K represents the most comprehensive source of information on financial performance made available for investors on an annual basis. Included within the 10K are three financial statements, the balance sheet, the income statement and the cash flow statement.