No.	the Financial performance Measure	Definition and Explanation	the formula	Advantages	Disadvantages	Case with Solution
1	Return on Investment (ROI)	a performance measure that uses readily available financial accounting information, it takes accounting income as measured by the income statement and divides it by the firm's investment in assets as measured by the balance sheet (1)	Income/Investment
2	Gross Profit Margin	Is a profitability ratio that measures what percentage of revenue is left after subtracting the cost of goods sold.	GPM=(Revenue-Cost of Sales)/Revenue
3	Net Profit Margin	Is a profitability ratio that measures what percentage of revenue and other income is left after subtracting all costs for the business	Net Profit Margin=Net Profit/Revenue*100
4	Working Capital	Is a measure of the business's available operating liquidity, which can be used to fund day to day operations.	Working Capital=Current-Current Liabilities
5	Inventory Turnover	is an efficiency ratio that measurs how many times per accounting period the company sold its entire inventory.	Inventory Turnover=Net Sales/Average Inventory at Selling Price
6	Leverage	Also known as the equity mulitiplier, refers to the use of debt to buy assets. If all the assets are financed by equity, the multiplier is one.	Leverage=Total Assets/Shareholder's equity
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Non-Financial measures:
No.	the Non-Financial Performance Measure	Definition and Explanation	the formula	Advantages	Disadvantages	Case with Solution
1	Average Waiting Time	The average amount of time that an order waits in line before the machine is set up and the order is process. (2)
2	On-Time Rate	The percentage of time products were delivered promotly scheduled.	(On-Time Rate)=(Total number of Units Shipped in a Given Period)/(Number of On-Time Units in a Given Period)
3	Product or Service quality
4	Employee training and development
5	Company and brand reputation
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