Explain how financial managers use financial calculators, Microsoft Excel, and financial statements to measure the financial performance of a business entity.

To measure the performance of an entity’s financial position, financial managers use Microsoft Excel and financial statements. Financial calculators are used to analyze numerical data related to investments, interest rates, inflation, cash flow and other factors that impact a company’s economic outlook. Microsoft Excel allows for more complicated calculations like calculating ROI or NPV, which takes into account variables such as costs, revenues and timelines in order to find areas that could be saved or invested.

Financial statements provide an overview of the company’s past performance by showing income and expenditure over certain periods. Financial statements also provide detailed data about liabilities and assets, which helps managers to spot patterns in the allocation of capital within organizations. By analyzing these tools together, financial professionals can gain a holistic view of future outcomes. This allows them to make more informed decisions about resource allocation.

By using all of these tools, experienced finance professionals can accurately assess the health of their organization and identify areas in which they could maximize profits or reduce losses. These strategies can help businesses remain competitive in their industries and achieve long-term success.