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Frameworks for Developing Performance Measures
There are a number of approaches which will be described here in broad terms:
At first glance, you may be thinking, why are there so many approaches and methodologies? Isn't there a best approach? The answer is no, there isn't one single best approach, at least not yet.
Each approach provides its own unique perspective. Each approach is valid and in its own way provides management with a lens with which to examine a particular situation.
Typical Financial Performance Measures Profitability - Profit margin, return on capital invested, return on equity Liquidity - Current ratio, cash position, working ca
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