What is one of the four components of the balanced scorecard?

The balanced scorecard is a strategic management tool that provides a framework for tracking and managing an organization's performance by balancing various perspectives. One of the key components of the balanced scorecard is financial performance, which encompasses financial ratios. These ratios provide critical insights into an organization's financial health, such as profitability, liquidity, and operational efficiency.

Including financial ratios in the balanced scorecard allows organizations to measure their past financial performance and establish targets for financial growth. This financial perspective is essential for ensuring that other areas of performance are aligned with the organization's financial goals, thus enabling managers to make informed decisions that drive overall business success.

In contrast, the other options listed do not represent core components of the balanced scorecard. While market share, social media engagement, and operational hours may be relevant metrics for assessing performance in certain contexts, they lack the direct focus on financial outcomes that financial ratios provide within the balanced scorecard framework.