The measurement gap (or why almost everything finance teams measure is wrong)
Summary
The article argues that traditional financial ratios like ROA, ROE, and ROI no longer capture how modern software and knowledge-based companies create value. It says intangible assets, data, human capital, and ESG risk now drive performance, yet many firms still measure them with industrial-era tools. The author proposes new metrics, including an Integrated Efficiency Ratio and a Return on Intelligence measure, to better reflect value creation in modern businesses. The piece also connects this measurement gap to startup and fintech ecosystems, especially in Portugal, where investors still evaluate companies with outdated frameworks. It closes by saying regulatory pressure and integrated reporting will push companies toward more multidimensional measurement systems.