Short and long run financial performance
You'll learn the difference between short-term and long-term financial performance measures, and how to apply them effectively in exam scenarios.
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In this lesson
- 0:00 Short and long run performance measures
- 1:01 Benefits and limitations of financial ratios
- 2:51 Benchmarking and comparison factors
- 4:00 Comparing with other companies
- 5:35 Balancing short and long term performance
About this lesson
This video covers why profit and financial ratios are backwards-looking tools best suited to historical analysis, while discounted cash flow techniques focus on future value. You'll discover the key benefits and limitations of ratio analysis—including how to identify trends and compare organisations, but also why financial measures alone can miss critical factors like brand and employee satisfaction. Finally, you'll explore how to choose appropriate benchmarks (prior years, budgets, or industry comparisons) and how to balance short-term and long-term measures through strategic reward systems, including practical exam tips on spotting clues in case study scenarios to target your calculations effectively.
Duration: 7m
Transcript
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