What does a company typically use to track its financial performance over time?

A company typically uses financial statements to track its financial performance over time. Financial statements, which include the income statement, balance sheet, and cash flow statement, provide a comprehensive overview of a company's financial health.

The income statement shows revenues and expenses over a specific period, helping assess profitability. The balance sheet offers a snapshot of assets, liabilities, and equity at a particular point in time, allowing the company to evaluate its financial position. Lastly, the cash flow statement tracks the inflow and outflow of cash, which is crucial for understanding liquidity and cash management.

While forecasting reports may help predict future performance and market analysis reports provide insights into competitive positioning, they do not serve the same primary function as financial statements in presenting historical and current financial data. Business plans are strategic documents detailing the company's direction but also do not serve as tools for monitoring financial performance over time.