Indicators of Financial Analysis Employed in Quantifying the Financial Performance of a Company

Abstract

The analysis of the performance of acompany is the most important issue of concern of the management of a company. In order to analyse the performance we use economic and financial indicators which summarizes the level of development and its evolution. These indicators provide us with important items of information about the company's level of performance, but we must keep in mind that they do not indicagte the way in which thies performance was obtained. The purpose of this article is to present and provide information on the key synthetic indicators pointing to the results of a company. Based on the information provided by these indicators we can picture an overview of the results registered by the company at the end of a fiscal year. The main financial indicators to which I will refer in this article are: liquidity indicators, indicators of risk and indicators of profitability.

Keywords

• current liquidity
• acid test
• net debt
• leverage
• profitability