publication . Article . 2016

Financial Indicators of Performance Measurement: Reality, Relevance and Distortion

Flavius-Andrei Guinea;
Open Access English
  • Published: 01 Jan 2016 Journal: Ovidius University Annals: Economic Sciences Series (issn: 2393-3127, eissn: 2393-3127, Copyright policy)
  • Publisher: Ovidius University Press
Abstract
The main criticism brought to managers and to managerial accounting systems was the lack of emphasis on the return of the use of invested capital and the excessive focus on the efficiency of production processes. This fact forced the transition to a new view on the way of establishing the strategic objectives measured by financial indicators. The aim of this paper is to demonstrate, through case studies, the relevance and possibilities of manipulation of a series of indicators used for assessing performance: return on investment, residual profit, economic added value, commercial profitability. The relativity and the criticized appraisal of performance only throu...
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Subjects
free text keywords: measures of financial performance, return on investment, residual income, economic value added, Business, HF5001-6182, Economics as a science, HB71-74
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Ovidius University Annals: Economic Sciences Series
Article . 2016
Provider: DOAJ-Articles

Table no. 8 Ranking of performance metrics for company A in 2016 Project Operating income Rank ROI Rank RI Rank X 480 3 24,00% 1 220 2 Y 600 2 15,00% 3 80 3 Z 1.020 1 17,00% 2 240 1 Source: Processed by the author, 2016

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