In general terms, financial indicators are data,which fully characterize the financial activities of the enterprise. They help to evaluate the results of management, summarize and summarize the financial performance indicators of the entity.
Financial indicators of the company mayConsidered as criteria for assessing the performance of an economic entity, and may be related to the choice of the direction and objectives of the enterprise, i.e. used in making managerial decisions.
The main financial indicators in the work of the enterprise include the analysis of such values: sales revenue, profit earned and cash flow of the organization.
Revenue from sales shows revenue,received by the enterprise from the sale of goods and finished products, from the performance of certain works and the provision of services for a specific period of time. The result can be expressed in both monetary and non-monetary form. The second form implies netting, barter and the like.
Profit is the difference between income,represented by sales revenue, and all expenses that the enterprise had in the relevant period. Costs should take into account the cost of goods, services or works. It is the profit received and is subject to taxation. And the rest of the profit, which is at the disposal of the entity after the calculation of all taxes, can be used by the enterprise for its own needs (expansion of production, payment of dividends to founders, etc.).
The balance of cash flows is calculated asthe difference between the total amount of funds received by the enterprise and other funds transferred to other organizations in a certain reporting period. At the same time, cash is understood as cash and non-cash money, and regardless of the currency in which the currency is traded.
These financial indicators need to be clearly defined.to distinguish between each other. Thus, when calculating profits, it is necessary to take into account all the company's revenues, including revenues from sales, and absolutely all other receipts of funds.
It should be noted that such financialindicators allow founders or controlling bodies to make a conclusion about the efficiency of the enterprise, identify problem issues and determine the ways of their solution.
To fully characterize financial activitiesenterprises there are financial indicators that are formed in the process of conducting analytical activities or during the implementation of production and investment activities of the business entity. At the same time, there is no universal coefficient that fully characterizes the results of the entrepreneur's activities.
Financial indicators reflecting the results of the company's operations - profitability, financial stability, liquidity and market value of assets.
Profitability characterizes the economicenterprise efficiency is a relative indicator that compares the result with the costs or resources used to achieve a positive effect. In practice, there are a large number of coefficients of profitability, the use of any of which depends on the choice of criteria for assessing the economic activity of the subject from the perspective of efficiency. This also determines the choice of the main evaluation indicator, represented by the profit that is used in the calculations. So, gross profit, profit before taxation, operating profit and net profit can be used
