Financial Performance Analysis Based on the Profit and Loss Statement

• Author: Ludmila Profir
• Position: Alexandru Ioan Cuza University of Iasi, Iasi, Romania
• Pages: 47-51

Law, Society & Organisations

Volume II, Issue 2 (1 / 2017)

47

Ludmila PROFIR

Alexandru Ioan Cuza University of Iași, Iași, Romania

FINANCIAL PERFORMANCE ANALYSIS

BASED ON

THE PROFIT AND LOSS STATEMENT

K

eywords

Financial information

Financial statement analysis

Net income analysis

Abstract

Financial performance is often difficult to achieve by economic entities, especially in the current economic

context. Successful models of some companies constitute examples of good practice for aspirants. The profit

and loss statement is part of the annual reports, is a synthesis accounting document that shows the result of

the companies activity and thus measures the firm’s performance during a year. The purpose of this paper is

to analyze the impact of the operating result on the financial performance through the net income. The

target population of the study was the companies listed and traded on the Bucharest Stock Exchange during

2012-2016. The results of this study showed that the operating result has contributed significantly to the

net income, and the companies listed and traded on the Bucharest Stock Exchange have successfully overcome

the negative effects of the crisis and the recession.

JEL Classification: G01, G19, M41