Financial performance -

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In general understanding of the financial indicators - data that characterizes the full financial activity.They help to assess the results of management, compilation and tabulation of the financial activities of the entity.

financial indicators of the company can be considered as criteria for evaluating the performance of the business entity, and may be associated with the choice of direction and goals of the enterprise, ieused in making management decisions.

main financial indicators in the analysis of these companies provide value: sales revenue, profits and balance of the resulting cash flow of the organization.

Proceeds from sales shows income received now from the sale of goods and finished products, the fulfillment of certain works and services for a specific period of time.The result may be expressed either in cash or kind.Under the second form is meant to offset, barter and the like.

profit is the difference between revenues represented the sales proceeds, and all the costs that the enterprise has been in the corresponding period.The costs should be taken into account the cost of goods, services or works.It received profit and taxable.And the rest of the profit, which is at the disposal of the subject after the calculation of taxes, can now be used for its own needs (expansion of production, the payment of dividends to the founders, etc.).

balance of cash flow is calculated as the difference between the total amount received for the company and other organizations listed them money in a certain period.Thus, under the funds are understood and cash and non-cash money, and whether or not the currency in which the turnover is carried out.

These financial results should clearly differentiate between them.Thus, when calculating income must be considered fully all the income of the enterprise, including the proceeds from the sale, and everything other income funds.

should be noted that such financial indicators allow founders or controlling bodies to conclude that the performance of the enterprise, identify concerns and determine the ways of their solution.

For a complete description of financial activity of the enterprise, there are financial indicators, which are formed in the course of the analytical work, or in the course of production and investment activities of an economic entity.However, there is no one universal factor that would fully characterize the performance of the entrepreneur.

financial indicators reflecting the results of the enterprise, - profitability, financial stability, liquidity and market value of assets.

Profitability characterizes the economic efficiency of enterprises, is a relative indicator that compares the result with the costs or the resources used to achieve a positive effect.In practice, there are a large number of profitability ratios, the use of any of them depends on the selection criteria for assessing the economic activity of the subject from the perspective of efficiency.From this also depends on the choice of significant estimates represented a profit, which is used in the calculations.Thus, gross profit may be used, pre-tax profit, operating profit and net profit