Monday 31 December 2018

Financial performance

Financial performance

A financial performance measurement is a data analysis and control for the company. Performance measurement used the company to perform its operational activities in order. To of the above fixes can compete with other companies. Information for investors about the company's performance can be use. To see if they will maintain their investment in the company or find other alternatives. In addition, measurements are also carry out to show both the customer or investor community in General that the company has a good.

Performance measurement is defined as " performing measurement "(performance measurement) is the qualifications and efficiency of company or segment or effectiveness in the operation of the business during the accounting period. Thus the notion of performance is a formal effort to evaluate the company implement efficiently and the effectiveness of the company's activity that has been carried out on a certain period of time.

Entitle "analysis of the Investment " says that the basic idea of this fundamental approach is that stock prices are influence by the performance of the company. When company performance is good then the value of the business will be high. With a high business value make investors turn to the company to invest its capital. So that it will happen to increase the stock price. On the contrary when there is bad news about the company's performance. Then it will cause a decrease in the price of shares in the company. Or it can be said that the stock price is a function of the value of the company.

Performance measures

There are three kinds of measure which can be use for measuring performance quantitatively are:

The size of the single criteria

Size a single criterion (single criteria) is a measure of performance that uses only a single measure. To assess the performance of managers. Weakness in the sole criteria use to measure performance i.e. people will tend to concentrate his efforts on the criteria on the venture so consequently other criteria are ignore, the

Possibility of having the same sense of importance in determining the success or not of the company.

The size criteria varied

The size of various criteria (multiple criteria) is a measure of performance using a variety of criteria. To assess the size of the Manager. These criteria seek out different aspects of the performance of managers. So that managers can be measure its performance from a variety of criteria. The purpose of this is to make use of diverse managers measure performance is directing its efforts to the various performance.

The combine criteria of Size

The size criteria combine (compositing criteria) is a measure of performance. That uses a variety of measures, to take into account the weight of each size and count. The average as an overall measure of the performance of managers. The combine criteria were done because the company realize. That some goals are more important than with other goals. So some companies give more weight to certain numbers on a variety of criteria. To get single size Performance Manager.

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