Financial Performance Measures are the numerical values used to evaluate the overall financial health and success of a business. They provide an objective gauge of the effectiveness of corporate strategies, operations, investments, and more. Take return on equity (ROE), for example. This metric looks at the amount of money a business earns relative to the amount of shareholder’s equity invested in it, which helps investors determine if their investment is delivering adequate returns. ROE can also highlight areas for strategic improvement. By regularly monitoring not just ROE but other key financial performance measures, businesses gain invaluable insights into their financial performance – allowing them to plan, strategize, and optimize accordingly.