FINANCIAL & ECONOMIC PERFORMANCE
When evaluating firm performance through financial and economic variables it is important to take into consideration the underlying assumption of this perspective, usually accepted by academic researchers and practitioners, which states that financial and economic outcomes are appropriate indicators of firm performance.
In this sense, the CEBR offers to its customers a complete performance analysis based on accounting variables. These indicators cover the following areas: liquidity, financial position, activity and profitability.
In addition, we introduce into the analysis a group of variables as independent factors that help in explaining profitability changes at the firm level. To attain this goal, our main tool considers a factor decomposition model of the profitability rates.
Finally, we in the CEBR are aware of the need for evaluating the firm’s relative position as compared to the rest of firms in its corresponding industry. Consequently, we also create an analysis that allows us to compare the firm’s financial and economic performance relative to that shown by its competitors.
It is important to remark that all our studies as well as the conclusions that we derived from our analyses have a strong foundation, since we will always use the most sophisticated and updated statistic and economic techniques.