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Financial Performance

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The notion of performance is linked to the proportion existing between resources that are used to get something and the result which is then obtained. In this way, performance is associated with benefit wave utility . Financial, meanwhile, is what relates to the finance (money, capital or flow).

He financial performance therefore it is the gain which allows to obtain a certain operation. This is a calculation that is done by taking the investment done and the utility generated after a certain period.

In other words, financial performance relates the profit achieved with the resources used . Take the case of a person which performs a fixed term in a bank. This subject deposits $ 1,000 in a fixed term that will beat the 90 days . After that period, you get $ 1,200 ; that is, received 200 dollars in interest concept. He financial performance of its fixed term, in short, was 20% .

To all of the above we have to add the existence of what is known as a statement of financial performance. It is a term that is used within the business scope to refer to the accounting summary that is carried out in an entity in terms of net income and expenses.

It is worth knowing other information of interest, such as the following:
-It is also called profit or loss statement.
- It can be presented once a month, quarterly or once a year.
-It becomes a very useful tool for the owners or senior managers of a company, since it is the material that allows them to know perfectly the main items of expenses and income on which the result that it obtains will depend on A certain period.
-In the same way, to know the profitability of a company, it becomes a useful instrument when it comes to getting new investors who can dare to put their money if they see that it is high or, at least, interesting.
-Among the expenses that must be recorded in the aforementioned statement of financial performance should be included from those related to losses to those related to interest, sales costs ...
-In the income section it is important and necessary that those of sales, interest, which have been obtained by gains in investments that have been taken appear ...

Operations with bonuses They also allow a certain financial return. An entrepreneur can buy, in 2014 , bonuses for a total of 50,000 pesos . These bonds expire in 2018 . When the date arrives, the person changes the bonuses for $ 80,000 pesos . For this businessman, the operation gave him a financial performance of the 60% .

Financial performance is often associated with risk and to predictability. The yield offered by a fixed term is usually lower than that provided by the actions, since it is an investment that offers greater security.

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