1. Profit"How much money are we making?" Find the answer on your P & L (Profit and Loss Statement aka Income Statement). Profit describes how much wealth your company created (profit) or consumed (loss) over a certain period of time. Other words for profit are earnings, net income, and the bottom line. A full measurement of profit must include owner's compensation. More profit is good.2. Cash flowThe difference between the amount of cash you end up with at the end of a certain period of time versus how much you started with. More positive cash flow is good.3. Balance sheet strengthGenerally speaking, your company's assets relative to its liabilities at a specific point in time. More assets (what the company owns) and fewer liabilities (what the company owes) results in a stronger balance sheet. Except when you're intentionally running a highly leveraged company, a stronger balance sheet is good.Measuring the results of a firm's policies and operations in monetary terms. These results are reflected in the firm's return on investment, return on assets, value added, etc.Read more: http://www.businessdictionary.com/definition/financial-performance.html # ixzz3xaLzuz97
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