How Operations Impacts Financial Perform...
Chao, Raul O.;Gold...
How Operations Impacts Financial Performance
Chao, Raul O.; Goldberg, Rebecca
OM-1779 | Published October 24, 2022 | 3 pages. Technical Note
Collection: Darden School of Business
Product Details
This note explains the building blocks of common financial performance metrics and show how operations affect those metrics. Return on assets (ROA) and return on equity (ROE) are two key measures of the financial performance of a firm. ROA captures the operational aspects of the firm while ROE captures the financing decisions of the firm.
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