Measuring Company Performance Using the Integrated Indicator
Measuring Company Performance Using the Integrated Indicator

Author(s): Ljilja Antić, Bojana Noviićević Čečević,, Jovana Milenović
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Performance measurement; Financial indicators; Integrated indicator
Summary/Abstract: When assessing the company’s financial position and performance, we most often use financial indicators such as net income, rate of return on assets, rate of return on equity, cash flow and the like. However, dynamic business conditions have brought the need to use an integrated (composite) indicator, especially for a comparative long-term analysis of several companies. The composite indicator consists of individual indicators (variables) and allows for a comprehensive assessment of performance in order to get a full picture of the company’s business that all stakeholders can understand. The application of this indicator is possible at the national and international levels. Therefore, this paper aims to point out how performance measurement using a composite indicator facilitates the assessment of business operations, but also investors’ decision-making.

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