DOI: https://doi.org/10.36719/2706-6185/47/189-192
Asad Cabiyev
Azerbaijan State Economic University
Master student
https://orcid.org/0009-0003-7384-786X
asedcebiyev@gmail.com
Financial Reports and Performance Metrics
Abstract
Financial statements and performance metrics are essential tools used to measure and assess an enterprise’s financial condition, operational efficiency, and profitability. These reports provide clear and comprehensive information on the financial performance of a business to stakeholders, including investors, creditors, management, and regulatory bodies. The core components of financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity. The balance sheet reflects a company’s financial position at a specific point in time and is composed of key components such as assets, liabilities, and equity. It enables stakeholders to evaluate liquidity, financial stability, and debt levels. The income statement presents the company’s revenues and expenses and determines the net profit or loss over a certain period, offering insight into operational efficiency and profitability. The cash flow statement tracks the inflow and outflow of cash, categorizing them into operating, investing, and financing activities. It provides valuable information about the company’s cash generation capacity and payment ability. Lastly, the statement of changes in equity outlines changes in the ownership structure and reflects the movements in shareholders’ equity.
Keywords: performance metrics, balance sheet, financial statements, current ratio, cash flow