Financial metrics help businesses measure performance in terms of economic results. These metrics provide a clear snapshot of how a company is performing and provide valuable insight into areas that need improvement. Financial metrics give an accurate picture of how much resources and capital are available to the business, allowing them to identify areas of opportunity or risk. Examples of these measurements include profitability ratios such as gross margin, return on invested capital and operating income. Other important metrics to measure business performance include liquidity ratios like current ratio and quick ratio, which examine the ability of a firm to generate sufficient cash for operations. Finally, leverage ratios including debt-to-equity and interest coverage reflect the financial discipline of management. Knowing these figures allows businesses to analyze their financial health and make informed decisions about investments and growth opportunities.