Economic Performance And Its Impact On Financial Performance

874 WordsSep 5, 20154 Pages
Economic performance is whether the company strategy and its execution have contributed to the ultimate performance. Economic performance is mainly reflected in four aspects: profitability, operating capacity, solvency and ability to resist risks. Economic performance can be shown in the impact of managing cost, the effect of property management, the influence of the distribution of capitals, and the composing of the shareholders ' equity return rate. The standpoint of profitability evaluation is economic added value and the rate of rise (profit). Choosing EVA in the net assets income rate, the return on total capitals and income per share index, this evaluation of enterprise profitability can reflect the condition of capital net income and capital gains, this is also the development trend of enterprise performance evaluation index. Besides, sales revenue (profit) growth rate index is used to measure enterprise growth. Operation ability can promote firms to enhance capital management, increase the service efficiency of property and improve profitability. The primary evaluation indexes are: stock turnover, debt receivable turnover and permanent assets turnover. The strength of the debt paying ability is the economic and fiscal status of a company . Moreover, it is a significant measure of business control. Primary indicators are worth debt ratio, liquidity ratio and acid test ratio. Anti risk capacity is the ability to prevent the adverse effects of various factors in the
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