The Importance Of Financial Performance

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Financial performance is multi face and is about how company is performing to generate revenue and growth (Njeri 2014). It is measured by the firm in monetary terms by several methods in accounting as return on asset, return on equity, return on sales, operation income, net asset value, earnings before interest and tax to assess the corporate performance. All these methods used by many companies in order to compare (Waddock and Graves 1997; Schniederjans 2013). Schniederjans (2013) added that for example earning per share reflects value and measure profitability of investments. Elayan et al. (2016) highlighted the quality of the financial reports that should have transparency, unbiased and understandable to reflect reality and ease decision …show more content…
For example if there is any problem it is solved quickly (Du and Jiang 2015). Social media maintains better efficiency and effectiveness in market so successful innovative, interaction let company have a competitive advantage so result superior financial performance (Logofatu and Alexandru 2012; Bowen and Bowen 2016; Njeri 2014). Kadam and Ayarekar (2014) added that there is positive relation between build reputation and brand awareness and having a valued and high financial performance of …show more content…
2016). There is a relation between turnover of a company and investors as the committed customers comes due to high turnover of company and vice versa as turnover decreases will result of uncommitted customers (Jung et al. 2015). 15% of organization improved their revenues due to social media because of technology especially sales tools. Sales performance of large organization is better than in small firms. There is positive relation between size of firm and level of technology (Rodriguez et al. 2016). Increase performance due to social media so increase in sales performance so higher revenues (Rodriguez et al. 2016; Parveen 2016). Sales performance is due to technology as social media increases brand awareness (Andzulis et al. 2012). Due to exposure social media have sales performance of company increases (Smith et al. 2015). Organization uses social media affects sales performance and increases by 19% its revenue during year and 21% of clients increased so positive relation between sales performance and organization (Rodriguez et al.

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