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How Operations Impacts Financial Perform...

Chao, Raul O., Gol...

Technical Note

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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