ECONOMICS

Detailed explanation-1: -Financial performance metrics include quick ratio, current ratio, working capital, gross profit margin, net profit margin, equity multiplier, debt-to-equity ratio, return on equity, return on asset, total asset turnover, inventory turnover, and operating cash flow.

Detailed explanation-2: -The balanced scorecard is a management system aimed at translating an organization’s strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization’s strategic goals are met.

Detailed explanation-3: -A financial key performance indicator (KPI) is a leading high-level measure of revenue, expenses, profits or other financial outcomes, simplified for gathering and review on a weekly, monthly or quarterly basis. Typical examples are total revenue per employee, gross profit margin and operating cash flow.

Detailed explanation-4: -The measurement taken by a balanced scorecard helps the company to improve, innovate. The main reason to include financial performance is how efficient the process is working. Financial performance shows the condition of a company.