What role do measures play in Power BI reports?

In Power BI, measures are essential components used to perform calculations on data that change dynamically based on user interaction. Measures are created using DAX (Data Analysis Expressions) and are compute expressions that respond to filters and slicers applied to the report. This means that as users interact with the report—such as selecting different categories or date ranges—the measures recalculate to reflect the current context. This interactivity allows users to derive insights from their data dynamically, which is a fundamental aspect of business intelligence.

Contrarily, static values would not change with user interactions, nor would they provide a comprehensive view of the data. Measures are distinctly different from raw data, which does not involve any calculations or aggregations and merely represents the original dataset. Text formatting pertains to the aesthetic aspects of reports and does not engage with the aggregated computations that measures provide. Thus, the role of measures in reports is crucial for dynamic data interaction and insight generation.