A firm is undertaking a revision of its financial metrics to make them more comprehensive and has decided to use metrics such as return on investment (ROI), return on assets (ROA), and economic value added (EVA). This is an example of utilizing which of the following types of metrics?

Question

Quizplus · Accepted Answer

These financial metrics are focused on the financial sustainability of the firm and help measure the effectiveness of its investments and utilization of assets to create value for shareholders. This falls under the category of financial sustainability metrics.

A Firm Is Undertaking a Revision of Its Financial Metrics