The Conceptual Framework Related
to the Enterprise’s Performances
Danubius University of Galati, Economic Sciences Faculty,
Abstract: The performance is c haracteristic to a state of competitiveness of the enterprise which must not be
mistaken for the indicators which describe it. From a quantitative p oint of view, the financial performance
versus the result is defined from the perspective of the enterprise’s profitability. It is imposed the transition
from the evaluation at historical prices to the evaluation at the correct value, f rom the abandonment of the
concept of the past and present per iod’s result to the concept of performance respectively, which gives the
future perspective of the enterprise. Regarding the predictive capacity of the financial performance indicators,
it can be noted that the exploitation’s result, the treasury flow and the added value serve the future treasury
1. Dimensions in defining the concept of financial performance
Performance is a state of competiti veness of the entity, which ensures a durable presence of the said
entity on its markets by achieving its strategic objectives. How can this performance be achieved? “by
engaging the enterprise in the process of lasting development, which implies creating value for the
shareholders, satisfying the customers and the employees, respecting the natural and the social
The term “performance” is used with a certain degree of imprecision nowadays. In spite of the fact
that it is abundantly used with multiple meanings, the term “performance” is rarely defined, even in
works where is considered the main study subject. To define performance you must start from the
notion of the enterprise’s performance itself, from the cause of its economic recognition, from the
performance’s measurement and from the way in which it is presented in financial situations.
It is generally accepted that performance2 represents a special accomplishment in a domain of
activity/field. This definition leads to the conclusion that “the performance is not an observation, it is
accomplished or it is built.” (Bourguignon, 1995).
The enterprise’s performance is addressed more to the enterprise’s possibility to make profit. From
here results the potential size of the resources that the enterprise will have and control in the future3.
1 Jianu Iulia, “The Evaluation, The Layout And The Analysis Of The Enterprise’s Performance. An Approach From The
Perspective Of The International Standards Of Financial Reporting”, CECCAR Ph. H., Bucuresti, 2007, p.123.
2 DEX, Univers Enciclopedic Ph. H., Bucuresti, 1996.