Financial Performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm's overall financial health over a given period. Analysts and investors use financial performance to compare similar firms across the same industry or to compare industries or sectors in aggregate. Common examples of financial performance include operating income, earnings before interest and taxes and net asset values. It is important to note that no one measure of financial performance should be taken own. Rather, a thorough assessment of a company's performance should take into account many different measures.
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