Financial managers rely on traditional P&L statements to measure financial performance, which is fine. But pricing is forward looking, not historical looking. How should marketing managers view financial reporting relative to pricing?

 

The Profit and Loss statements are important statements to any given company. The profit and loss statements indicates profits and losses made by the company over a given financial period. They are indicative of the financial performance of the company in terms of the what revenue they put in, how much costs were entailed and what remained as a profit to describe the company as a profitable one or loss making that's they show the progress of the company activities,

Step-by-step explanation

When one does look at the performance of the company, the companies have moved ahead of the old definition of looking at profit and loss as being indicative of the performance of the company. The company's performance can be viewed from a lot of other documents which talk about the continuous performance of the companies. These documents include the cash flow which talk about how healthy and regular the cash flow is, what are the sources of cash etc. which talks about the sentiment of the company and those who fund the company and the kind of trust put into the company.

Besides this, the meetings of board etc. Talk about the governance of the company which is again indicative of how well the company is performing and what its outlook is for the future. These talk of whether the company would be a good place to invest in etc.

The company reports which are annual again help the outsiders to look at the company and decide whether it is a good company to be apart of or not. The CSR reports and the impact on environment are other factors that help measure the performance of the company.