What is an example of a financial objective?


Quick Answer

One example of a financial objective is to achieve a 20 percent profit growth in one year. Similarly, a company might aim to increase revenue by 25 percent from one quarter to the next. A cost-based financial objective is to cut overhead costs by 10 percent within six months.

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Full Answer

Another type of financial objective is to generate positive cash flow of $10,000 during a quarter. A company that needs cash to cover near-term expenses may have a cash flow objective. A more specific financial objective is to generate 5 percent growth in revenue from existing customers from one period to the next.

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