statement of financial performance

A statement of financial performance is an accounting summary that details a business organization’s revenues, expenses, and net income. … It shows the company’s bottom line so you can see how profitable your company is during a certain period of time, such as quarterly or annually.

A statement of 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.

An income statement or profit and loss account (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, statement of earnings, operating statement, or statement of financial performance ) is one of the financial statements.

Financial KPIs (key performance indicators) are metrics organizations use to track, measure, and analyze the financial health of the company. These financial KPIs fall under a variety of categories, including profitability, liquidity, solvency, efficiency, and valuation.

Monitoring your financial performance therefore creates more certainty and confidence in making both short and long term decisions. This in turn leads to a healthier business and faster growth rate. It also allows you to outperform and outmanoeuvre competitors who fail in this regard.