respond to: A financial manager can assess a company's performance using various metrics and indicators to determine its success or distress. Here are some key factors they might consider:

Financial Ratios: Ratios such as profitability ratios $($e$.$g$.,$ return on investment, profit margin$),$ liquidity ratios $($e$.$g$.,$ current ratio, quick ratio$),$ and solvency ratios $($e$.$g$.,$ debt$-$to$-$equity ratio, interest coverage ratio$)$ provide insights into the company's financial health.

Cash Flow: Monitoring cash flow statements helps assess the company's ability to meet its short$-$term obligations, invest in growth, and return capital to shareholders.

Revenue Growth: Consistent revenue growth indicates market demand for the company's products or services and its ability to expand its market share.

Market Position: Analyzing market share, customer satisfaction, and competitive positioning provides context for the company's performance within its industry.

Operational Efficiency: Efficiency metrics such as asset turnover ratio, inventory turnover ratio, and days sales outstanding $($DSO$)$ reveal how effectively the company utilizes its resources.

Debt Levels: Keeping an eye on the company's debt levels relative to its earnings and equity can indicate its ability to manage debt and avoid financial distress.

Industry Trends: Understanding broader industry trends and forecasts helps contextualize the company's performance and anticipate potential challenges or opportunities.

Example of Success: Tesla exemplifies success in today's business world. The company has achieved significant revenue growth driven by high demand for its electric vehicles, innovative technology, and expansion into energy storage and solar products. Tesla's stock price surged, making it one of the world's most valuable automakers. Its success is evident in its profitability, market leadership in electric vehicles, and continued investment in research and development for future growth.

Example of Distress: One example of distress in today's business world could be traditional brick$-$and$-$mortar retailers struggling to adapt to the rise of e$-$commerce. Companies like J$.$C$.$ Penney or Sears faced declining revenues, store closures, and mounting debt due to changing consumer preferences and increased competition from online retailers like Amazon. Their inability to effectively transition to digital platforms, coupled with high fixed costs associated with physical stores, led to financial distress and, in some cases, bankruptcy filings.