Additional performance measures
You'll learn what additional performance measures are and why they matter beyond standard financial ratios. This lesson covers key metrics like EBITDA, net financial debt, and free cash flow—measures that aren't defined in accounting frameworks but are widely used by management and investors to assess performance.
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In this lesson
- 0:00 Introduction to Additional Performance Measures
- 0:14 Understanding EBITDA and Its Benefits
- 0:26 Advantages of Advanced Performance Measures
- 2:05 Disadvantages and Manipulation Risks
About this lesson
You'll explore how these measures work, their advantages for evaluating management performance and comparing entities, and their disadvantages including inconsistent calculations, potential manipulation, and lack of standardisation. Understanding these measures is essential for interpreting real-world financial analysis and performing well on your qualification papers.
Duration: 3m
Transcript
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