INDICATORS OF FINANCIAL PERFORMANCE AND STABILITY: UNIQUE CHARACTERISTICS AND FORMATION

Abstract

This article explores the key indicators that measure financial performance and stability, highlighting their unique characteristics and the processes involved in their formation. Financial performance indicators, such as profitability, liquidity, and efficiency ratios, provide insights into a company's operational success and financial health. Stability indicators, including solvency ratios and leverage metrics, assess a company's long-term viability and risk management. Understanding these indicators is crucial for stakeholders, including investors, managers, and policymakers, to make informed decisions. The article delves into the methodologies used to develop these indicators and examines the factors influencing their accuracy and reliability. By identifying the distinctive traits and formation processes of these financial metrics, the study aims to enhance the comprehension and application of financial analysis in various economic contexts.