Considerations Regarding the Assessment and Measurement of Financial Performance
Abstract
Financial performance is a complex indicator that has represented and represents a priority, an assurance of profitable economic results, and also a hard to reach indicator. Given the importance and necessity of measuring the financial performance both for the internal and external environment of the economic entity, the main purpose of this article is to present concepts regarding the financial performance: typology, importance, indicators that measure the performance. The paper also aimed to highlight the importance of knowing and measuring performance, based on an empirical study conducted on a sample of five companies in the pharmaceutical field (companies whose object of activity is the retail trade of pharmaceuticals, in specialized stores - CAEN 4773) for which profitability indicators were analysed for a period of fifteen years (2004-2018). The five companies were chosen on the basis of turnover, representing the five best performing companies in the field of trade in pharmaceuticals. The research results show that financial performance is the goal of an economic and social game whose main actors are economic entities, also it is a measure of profit, growth, productivity, value creation, being a complex indicator that confirms the profitability of the business, and performance evaluation involves meeting the requirements of stakeholders. In addition to obtain profit, an entity must focus on sustainable development business, on a capitalization of factors of production, obtaining the best and optimal results in relation to the resources consumed.
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