How Operations Impacts Financial Performance
This note explains the building blocks of common financial performance metrics and show how operations affect those metrics. Return on assets (ROA) and return on equity (ROE) are two key measures of the financial performance of a firm. ROA captures the operational aspects of the firm while ROE captures the financing decisions of the firm.
Collection: Darden University of Virginia (USA)
Ref: DARDEN-OM-1779-E
Format: PDF
Number of pages: 3
Publication Date: Oct 24, 2022
Language: English
Description
This note explains the building blocks of common financial performance metrics and show how operations affect those metrics. Return on assets (ROA) and return on equity (ROE) are two key measures of the financial performance of a firm. ROA captures the operational aspects of the firm while ROE captures the financing decisions of the firm.
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