First of all you need to consider whether you need them or not. To make it cleat financial performance is a ratio of one line from Balance sheet to another one or to the line from Profit and loss account.

For those who blindly believe that the figures of financial performance will throw light on the real state of affairs, I will claim once again:

Financial performance is not the magical figures enabling to realize, it is the result of the division of one line from the statement by the other. AND NOTHING ELSE!

So, if you do not have the basic reporting elements prepared thoroughly (Balance sheet, Profit and loss account , Cash flow statement),the performance results will show you nothing useful.

If you have those thorough prepared reports, hardly will you need the financial results because all the necessary information can be found in the statements in the form which is easy to understand and the figures there are proved.

Who may need the financial performance?

First of all, financial performance is needed for the people who deal with a large number of enterprises and compare the businesses for that the benchmark is used. If you are the head of one enterprise and spend almost all the time there, 99% of the financial results are useless for you.

You may need the following:

1. return on equity shows the profit of the enterprise (in percentage from owner’s equity, %) for the reporting period.

2.  receivables turnoverratio shows how quickly the receivables turn in cash;

3.  inventory turnover shows how quickly the finished goods at the warehouse are turned into the accounts receivable;

4.  net profit margin in sales volume shows the net profit margin (in percentage, %) in the sales volume of the enterprise;

5.  gross profit rate in sales volume shows profit margin (in percentage, %) in the sales volume of the enterprise;

Where to post these figures?

The first three results are to be posted below Balance sheet, the fourth and the fifth ones are to be posted into Profit and loss account.

I see no point in using more indicators, though if you like to use them – why not to use, they have been developed to get the information in the most convenient way.

If you still lack the information about the above mentioned indicators visit this page. Here you can find a lot of information. Otherwise, you can search on your own or google.