Strategic Management of DAIMLER

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview about Tesla......................................................................................................................2
1. Comparison and contrast of financial performance and financial position of Daimler and
Tesla............................................................................................................................................4
2 Cash position of both companies. .........................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic management is the continuous planning, monitoring, evaluation and assessment
of all which is required for an organisation to achieve its objectives and goals. It includes the
setting goals, evaluation of competitive environment, evaluation of internal organisation and
strategies. This ensure that management properly use the strategy across organisation. Financial
analysis refers to evaluation the analysis of company like income statement, balance sheet and
cash flow statement. The financial analyst helps company to evaluate the investments which is
made by companies and provide strategy to companies regarding investment. The balance sheet
gives the detail about actual position of company. To understand this concept two companies
Tesla and Daimler has been taken. The both companies deals in automotive industry. As
comparison of financial performance and financial position of Tesla and Daimler is being
explained in this report. The financial strength and weaknesses has also been discussed in this
present report. As to know cash position of both companies, the cash flow statement is being
analysed in this report.
Overview of DAIMLER
Daimler are the one of biggest producers of premium cars and world's biggest
manufacturer of commercial vehicles across the world. The company provides fleet
management, insurance and innovative mobility services. This is a German multinational
automotive corporation with headquartered in Stuttgart, Bargain-basement, Germany. The
company was founded in 1890 by Rebottle Daimler (Rave, 2016) . The key people for company
is Karl Benz and Rebottle Daimler. In 1890, the company Daimler-Motoren-Gesellschaft was
established. Daimler owned number of cars, bus, truck, and motor cycle brands including the
Mercedes-Benz, Mercedes-AMG, and detroit diesel etc. Daimler provides the financial services
under the company Daimler Financial Services. The company production output was 3321350
for year 2017. As company has earned revenue of EURO 164.33 Billion in year 2017. The net
income of company for the year 2017 was EURO 10.864 billion.
The respective company have many issues that hinder the production level and also
reduced the profit in a specific period of time. The main reason for problem is that earlier
marketing strategy of company was not so effective and appropriate so it does not support in
increment of sales that overall reduces the market share of Daimler. After few years
Management focus to improve the profit and build string national image that will defiantly helps
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to grow profit in the upcoming future. So in order to increase sales company focus to apply the
4Ps marketing strategy. As per the adopted strategy company use to improve the design, quality,
durability of different product. The set the best suitable prices of their product that were offered
for sales which attract more number of customer.
Timeline of Daimler AG
Benz & Company, 1883-1926
Daimler Motoren Gesellschaft AG, 1890- 1926
Daimler-Benz AG, 1926 – 1998
DaimlerChrysler AG, 1998-2007
Daimler AG, 2007 - Present
Brands of Daimler:
 Mercedes – Benz Cars
◦ Maybach – production ended in 2012, but S- Class is still sold as Mercedes maybach.
◦ Mercedes – Benz
◦ Mercedes – AMG
◦ Smart
 Daimler Truck :
◦ Freighliner
◦ Mitsubishi Fuso
◦ Thomas Built Buses
◦ Sterling trucks
◦ BharatBenz
 Daimler Buses
◦ Mercedes Benz Buses
◦ Orion Bus Industries, closed in 2013.
◦ Setra
 Daimler Financial Services
◦ Mercedes Benz Bank
◦ Mercedes Benz Financial
◦ Daimler Truck Financial
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The Daimler has worldwide networks of production plant and research centres. The
company has various manufacturing plants across the world for the production of different
products of company. As company have pants in country like Germany, USA, Brazil, Turkey,
France, Czech Republic, Indonesia, Japan and Mexico etc.
Overview about Tesla
In today's era there is an emerging need of advanced automotive companies that focus in
creating the best motor vehicle according to the requirement of people and that fits the time.
There are various large companies that focus to develop innovative motor and also focus to open
auto mobile repair shops and various fuel filling stations. Tesla was one of the leading
automotive companies in the recent time. The company was founded in 2003 by a team of
professional and a skilled staff member specially engineers. The CEO of company is Elon Musk
that develop a “Secret Master Plan” in 2016 to introduced a special motor with special feature
that is best in the industry and at a very cheap rate (Powell, 2014). The manager of Tesla Inc.
designs, create, producers various kind of electric vehicles with the main motive to sell and earn
huge revenue. The also produces various kind of tools of energy generation and storage system
at global level such as china, united state, Norway etc. The main is divided into two production
segment that are energy generation product and Automotive, storage devices. The manager
focus to produce those electronic vehicle at a very cheap rate that makes customer more satisfied
and they dot need to compromise their desire to drive the electronic sports cars.
In past year, the marketing strategy used by company in order to increase the overall
performance and productivity. They uses Gigafactor concept to bring effectiveness in the process
of production. But it was observed that Tesla, is not able to increase sales within a specific
period of time and keeps on diminishing the global image. This is because other leading
company adopt the best selling practices and promote their product at larger platform. In order to
overcome the specific problems management of Tesla, applies the concept of STP that support to
grow the financial stability and maintain long term profitability. It also aid company to grow its
market share and increase customer base by properly target the customer segment those are
willing to buy auto-mobiles. With the assist of this strategy company is able to position product
in market that are more desirable and useful for customer which will ultimately increase profit in
the upcoming period.
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The automotive department of Tesla produces and offer sports utility cars and sedan.
They also wants their customer to get the best solution in order to any damage or fault happen to
the vehicle, therefore Tesla has developed its owned service station, services plus location and
mobile executives that visit the place and repair the vehicle. The engineer of Tesla introduced
many electric vehicle because they believes that as soon as world stop dependent on fossil fuels
their in a chance of better future in coming time.
Mainly the vehicles are produced in the factories of Tesla under the guidance of special
skilled manager and labour force. The main factory of Tesla are located in different part such as
Fremont, California and other part of united state. The main focus of company is to produce the
finest motor in the industry so they wants their factories to be safe by making proactive approach
to safety. Manager of company wants the best production employees and they wants their
employees to be well skilled and knowledgeable. Therefore they provide on the job training and
record their performance in the daily basic and found the point of improvement. There are
approx 45000 of skilled employees working in Tesla with the motive to reduce the burden of
fossil fuel and produce electronic vehicles.
Tesla produce vehicle with some special features such as power pack mileage, power
wall protection and solar roof and they reduce the weight of battery by introducing the new
battery cell. So the manager of Tesla are building the most affordable and accessible car in the
industry to large number of people. They main purpose of company is to reduce the the burden of
pollution level in country with clean energy production and transport. Engineer with their
knowledge and skills combined the electric car, batteries and energy generation and production
to produce better future.
At the end of accounting year 2017-18 the operating income is US$1.632 billion and net
income US$1.961 billion. Total assets shows the balance of US$28.655 billion and total equity
shows the amount of US$4.267 billion.
1. Comparison and contrast of financial performance and financial position of Daimler and Tesla
Financial performance of every company depends upon various element. As it is
important to have a good financial performance of company because it indicates a good growth
of company. As company does various things for keeping their financial performance up to the
level. The financial performance is analysed by various things like balance sheet, income
statement, horizontal and vertical analysis and ratio analysis. The financial position of company
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is calculated out of balance sheet. It shows the actual position of company. This gives clear
picture of company's creditor, long term loans, short term borrowings, current assets of company
and non current assets of company comes under this financial position. As balance sheet is
prepared at the end of each accounting year by every company ion order to know the actual
position of company. Apart form this the profit and loss statement shows how much profit or loss
company for a particular fiscal year. The profit and loss account includes the indirect expenses
and indirect revenues of company. This is very helpful statement to know about revenue
generation of company (Muogbo, 2013). The company also use the ratio analysis which is used
to analyse the various aspect of the company's operating and financial performance such as is
efficiency, liquidity, profitability and solvency.
The ratio analysis is helpful in validating the financing, investment and operating
decisions of firm. It gives the summary form of financial statement. The ratio is very helpful in
simplifying financial data into simple ratios of operating efficiency, financial efficiency,
solvency and long term position etc. With the help of ratio analysis management tries to find out
the issues in management areas. This enables a company to do compare with other firms,
industry standards and intra firm comparison. As all these ratios are helpful in getting
information about the current ratio from financial position of company. Financial performance
refers to the degree to which financial goals has been achieved. It helps to identify company's
strength and weaknesses and company can make its financial position more strong by
eliminating the weaknesses of company.
Horizontal Analysis:
The horizontal analysis is an analysis technique which shows changes in value of
corresponding financial statement items over a period of time. This is very useful technique to
analyse the trend situations. As more than two or more periods are used in horizontal analysis. It
is utilized in financial statement analysis to make comparison of historical data like ratios, line
items with in given period of time (Mathieu and Chen, 2011). The analysis use the absolute
comparison or percentage comparison where numbers are expressed in percentage of amount in
baseline year with base percentage of 100%.
Vertical Analysis:
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This is the proportional analysis of financial statements where each line item on financial
statement is listed use as percentage of another item. It is also useful in timeline analysis to see
relatively changes in accounts over time like comparison on basis of five year period.
Ratio analysis for the Daimler and Tesla
There are different types of ratios, on the basis of that the comparison is being done for
Daimler and Tesla these are described as below:
Current Ratio:
Current ratio is used by the various industries to determine the company's short term
liquidity. This shows the company's capacity to generate enough cash to make payment of all
debts at once they become due (Jofre, 2011).
Quick Ratio:
Quick ratio shows the how effectively a company meet its short term financial abilities.
This is also known as acid test ratio. It allows a company to use the most liquid asset of business
like stock in order to meet its liabilities.
Daimler
Ratios Formula 2014 2015 2016 2017
Current ratio Current Assets/Current
liabilities
1.15 1.19 1.21 1.23
Quick ratio Current assets-stock-
prepaid expenses/current
liabilities
4.34 4.05 4.19 3.99
Tesla
Ratios Formula 2014 2015 2016 2017
Current ratio Current Assets/Current
liabilities
1.52 0.99 1.07 0.86
Quick ratio Current assets-stock-
prepaid expenses/current
liabilities
1.01 0.48 0.67 0.51
Interpretation:
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The Daimler has the high current ratio for the year 2017 which is 1.23 which shows the
company has used its current assets properly to generate more cash and pay the debts. Where as
Tesla has lowest current ratio .86 for year 2017 which shows the company could not use properly
for paying off it payments. As Tesla has more liabilities then assets. For the year 2016 Daimler
has current ratio of 1.21 while other one has 1.07 which shows Daimler using its current assets in
an efficient way. As for the year 2014 and 2015 Daimler has 1.15 and 1.19 while for Tesla it has
the 1.52 and .99. The quick ratio of Daimler for year 2014, 2015, 2016 and 2017 is 4.34, 4.05,
4.19 and 3.99. While Tesla has quick ratio of 1.01, .48, .67 and .51. So the Tesla has lowest
quick ratio in compare to Daimler.
Debt equity ratio:
It is a financial ratio which indicates the how much equity does company have over its
liabilities. This shows the shareholder equity and debt which is used by company in order to
finance the assets of company.
Daimler
Ratios Formula 2014 2015 2016 2017
Debt equity ratio Debt/Equity 0.83 0.84 0.94 0.93
Tesla
Ratios Formula 2014 2015 2016 2017
Debt equity ratio Debt/Equity 2.06 1.91 1.26 2.22
Interpretation:
As for Daimler the debt equity ratio has the .83, .84, .94 and .93 which means company
have lower debt over its equity. While Tesla has ratio of 2.06, 1.91, 1.26 and 2.22 which shows
the company is more debt in compare to other one. As Tesla has more debt for the year 2017
which is 2.22. The company needs to take action for this as soon as possible.
Asset turnover:
This is an efficiency ratio which shows the company's capacity to generate sales from its
assets. This ratio indicates how efficiently a company use the assets to generate more sales (Hart
and Dowell, 2011).
Receivables turnover:
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This is an activity ratio which show how efficiently company uses its current assets. This
indicates the how promptly debtors of company make payment.
Inventory Turnover:
Stock turnover shows the number of times of a company sold and replace its inventory
during a given time period.
Daimler
Ratios Formula 2014 2015 2016 2017
Assets turnover Net sales/ average total
assets
0.73 0.73 0.67 0.66
Receivable turnover Net credit sales/average
account receivables
4.19 4.31 3.82 3.84
Inventory turnover Cost of goods
sold/average stock
5.32 5.27 4.94 5.09
Tesla
Ratios Formula 2014 2015 2016 2017
Assets turnover Net sales/ average total
assets
0.77 0.58 0.46 0.46
Receivable turnover Net credit sales/average
account receivables
23.2 20.46 20.96 23.18
Inventory turnover Cost of goods
sold/average stock
3.58 2.8 3.23 4.4
Interpretation:
As assets turnover for company Daimler is for the year 2014 to 2017 is .73, .73, .67
and .66 as company has used its assets more in the year for 2014 and 2015 which is .73 so for
these year Daimler has efficiently used its assets which helped in generating more sales. The
Tesla has used its assets for the year 2014 most as it generated more sales for this period of time.
As debtors turnover of Daimler is quite good as its debtors are making payment on time while if
comparing Tesla the debtors turnover is very high which shows the debtors of company making
late payment. The inventory turnover is high for Daimler is good situation for company while
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comparing to Tesla it has low inventory turnover which shows the stock is not contributing much
in increasing of sales,
Return on equity:
This is a measure of profitability of the organisation in relation to equity. This measures
the how well a business utilize its investment to earn more revenues and to earn more growth.
This indicates the return on equity of shareholders (Goldfarb and King, 2016).
Return on assets:
The return on assets shows the how much company earning revenues from its assets.
Daimler
Ratios Formula 2014 2015 2016 2017
Return on assets Net income/average total
assets
3.89 4.14 3.71 4.22
Return on equity Net income/shareholder's
equity
16.13 17.33 15.29 17.26
Tesla
Ratios Formula 2014 2015 2016 2017
Return on assets Net income/average total
assets
-7.11 -12.75 -4.39 -7.64
Return on equity Net income/shareholder's
equity
-37.25 -88.84 -23.11 -43.63
Interpretation:
The return on assets of Daimler is very good as they are actively participating in
increasing the revenues of company. While Tesla has negative return on assets which shows the
bad performance of Tesla assets. As return on equity is very good of Daimler, the shareholders
are actively doing transaction on shares of company while the Tesla has negative return on its
shareholder which shows the company is in debt and performance of its equity is not up to the
mark. The shareholders of Tesla are facing huge loss after buying the shares of company.
As overall it can be said that the company Daimler has far better than the Tesla as
because Daimler is giving profit and dividends to its shareholders while Tesla shareholders are
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facing huge loss. The reason behind this kind of performance of Tesla could be the behaviour of
CEO of Tesla, Elon Musk, who has smoke weed in live TV show and on that day the Tesla share
has fallen by the approx 6% to 7%. So these kind of behaviour Tesla is not performing good.
Horizontal Analysis
Horizontal analysis is the analysis of financial statement to compare between the two
years. It shows the changes between the two years and tell about company whether its increasing
or decreasing.
Horizontal Analysis for Daimler
Particular 2017 2016 Change amount Percentage
Cash 12072 10981 1091 9.04
Short term
investment
11418 11832 -414 -3.63
Receivables 43792 41719 2073 4.73
Inventories 25686 25384 302 1.18
Prepaid expenses 632 566 66 10.44
Other current
assets
13135 11570 1565 11.91
Horizontal Analysis for Tesla
Particular 2017 2016 Change amount Percentage
Cash - - - -
Cash and cash
equivalent
3368 3393 -25 -0.74
Receivables 515 499 16 3.11
Inventories 2264 2067 197 8.7
Prepaid expenses 268 194 74 27.61
Other current 155 106 49 31.61
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assets
Interpretation:
The Daimler has enough cash for its regular operation of business and there is good cash
flow in the company which can be seen by the change in its cash in between for the two years.
As Tesla has bad cash because it has negative cash equivalents which shows more outflows than
inflows. The Daimler has negative short term investment which means company is bearing loss
on its short term investment. The Daimler has good amount of debtors and company's debtors are
paying to company on regular basis. There is 4.73% change in Daimler debtor from the year
2016 to 2017. While Tesla has some debtors but the changes of debtors is low in compare to
Daimler. Apart from this Tesla is maintaining good amount of other current assets while Daimler
is unable to maintain other current assets. Overall Daimler has good amount of current assets and
they are using their assets properly while Tesla is not able to do that.
Vertical Analysis for Daimler
Particular 2014 2015 2016 2017
Sales 100.00% 100.00% 100.00% 100.00%
Cost of goods sold 78.30% 78.73% 79.15% 79.11%
Gross Profit 21.70% 21.27% 20.85% 20.89%
Total operating
expenses
14.40% 12.88% 12.97% 14.09%
Operating Income 7.29% 8.39% 7.88% 6.80%
Vertical Analysis for Tesla
Particular 2014 2015 2016 2017
Sales 100.00% 100.00% 100.00% 100.00%
Cost of goods sold 72.43% 77.17% 77.16% 81.11%
Gross Profit 27.57% 22.83% 22.84% 18.89%
Total operating
expenses
33.39% 40.53% 32.38% 32.78%
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Operating Income -5.82% -17.70% -9.54% -13.89%
Interpretation:
As it can be seen from the above vertical analysis that operating income of Daimler is
very good as it is showing positive result from last four year but in Tesla has very bad number in
operating income as it is running in loss from last four years. So comparatively the Daimler is
good company in terms of profit and Tesla is not up to the mark.
2 Cash position of both companies.
In business world every company to maintain sufficient amount of cash that will be
helpful for them in solving uncertain event within company and run daily business operation in
effective manner. Accountant of companies are liable to maintain proper cash flow and income
during a at the time of transaction happen. The prepare a special account in order to maintain the
flows and incoming of cash within company that is called cash flow statement (Afonina and
Chalupský, 2012). These statement are prepared for the purpose to determine the actual cash
position of company during an accounting year. Basically there is slightly difference between the
cash flow and cash position of company such as cash flow describe the the net change in the
result over the total outflows and inflows of cash. Whereas the cash position defines the absolute
cash place and position of company at a particular period of time. It is observed that companies
with the best current postilion and positive cash inflows during an accounting year are the main
goals. The manager of company use to determine the actual cash position by comparing the total
cash level with the upcoming expenses (Argote, 2011).
In large companies the accountant used to keep a regular record to maintain the cash
position at a particular time. In common, cash position is the liquidity of cash that can be used to
meet the current liabilities. The amount generated form liquid assets or cash balance available in
company. It is responsibility of accountant to determine the actual cash position of company by
calculating the current ratio that is determined by dividing the current assets by the current
liabilities. For example a current assets of amount $60000 is divided by the current position of
liabilities as shown on the balance sheet is $30000. Then the current ration is equal to 2:1.
The cash flow statement of Tesla and Daimler that help in determining the current cash
position of company is shown underneath.
Review of external environment.
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In order to gain the competitive advantage and become more economical the management
are require to analyse the external environment factors with the support of PESTEL analysis.
PESTEL analysis of Tesla.
Political: It includes impact of governmental policies and standards that can be positive and
negative. Some of the external elements crucial for company are new global trade agreements,
political stability in the majority of market. Thus, it is observed that Tesla have the opportunities
to improve overall financial performance by adopting incentive schemes from governance.
Economical: Various economic elements such as, trade stages, currencies fluctuation, market
stability that influences the business of automotive business. Thus in Tesla manager needs to
address the factors such as diminishing battery expenses, reducing cost of renewable energy,
economic stability problems. Removing these threats will help company to expand business in
dynamic nature of business.
Social: This includes the business aligns of Tesla with social trends in its target market. The
social factors includes increased popularity of low carbon lifestyle, more demand of renewable
energy, improving method of wealth distribution in growing market. It will support company to
have better growth opportunities.
Technological: It is related to the techniques and technologies that impact the remote areas of
company. The technological external forces that are important in Tesla are High rate of
technological alterations, increased in the automatic techniques in different vehicles, more
demand of online mobile system. This means that respective company have more option to
expand their business at global and local level.
Environmental: The factors that are related with the environment condition of a place such as
climate condition, weather etc. The following affect the business of Tesla market such as sudden
changes in climate, rising standard on waste disposal, enlarging environmental programs. It will
support company to have more growth opportunities depending on the nature of product.
Legal: The various laws and legal system must be consider by the manager of an organisation in
order to make meaningful decision and better business growth. The legal constraint in context of
Tesla are energy consumption regulations, dealership sales regulation in the united states.
Cash flow statement of Daimler
Year 31/12/17 31/12/16 31/12/15 31/12/14
Particular
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Net income 10525000 8526000 8424000 6962000
Operating activities
Depreciation 4366000 4210000 4125000 3694000
Adjustments to net income -1220000 91000 1072000 -769000
Changes in accounts
receivable -1592000 -962000 -205000 -606000
Changes in liabilities 1288000 757000 142000 853000
Changes in inventory -1455000 -1272000 -2613000 -2768000
Changes in other operating
activities -14874000 -8907000 -11978000 -9852000
Total cash flow from
operating activities -1652000 3711000 222000 -1274000
Investment activities,
Capital expenditure -6744000 -5889000 -5075000 -4844000
Investments -191000 -2585000 -2842000 3419000
Other cash flow from
investment activities -22000 36000 -39000 -30000
Total cash flow from
investment activities -9518000 -14666000 -9722000 -2709000
Financing activities
Dividends paid -3477000 -3477000 -2621000 -2407000
Sale purchase of stock 0 0 0 0
Net borrowings 16794000 15763000 12464000 4833000
Other cash flow from
financing activities -260000 -304000 -274000 -168000
Total cash flow from
financing activities 13129000 12009000 9631000 2274000
Effect of exchange rate
changes -868000 -9000 138000 323000
Change in cash and cash 1091000 1045000 269000 -1386000
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equivalents
From the above mention cash flow statement for the last four year of Daimler shows that
current cash potions of company good during the time period. In the year 2014-15 company
shows the net income about 6962000, the amount of total cash flows from the operating activity
is equal to (1274000), total cash flow from investment activity is (2709000) and the total cash
flow from the financing activity is about 2274000. So at the end of accounting year company
shows a negative balance of (1386000) which means that company does not have a strong cash
position. In year 2015-16 the net income shoes the amount of 84,24,000, the total amount flow
from operating, investing and financial activities shows the balance 2,22,000, (-97,22,000) and
9631000 respectively. At the end of year cash position of company is 2,69,000 that shows the
slightly good position of company. In year 2016-17 the operating, investing and financial activity
shows the amount of 3711000, (1,46,66,000) and 12009000 and net income of amount 8526000
and cash equivalents amount generated at the end of year is 1045000. Similarly at the end of
financial year 2017-18 the net income is 10525000 the total amount flows from all there activity
is (1652000) from operating activity, (9518000) from investment activity and from financial
activity the amount flows of about 13129000 that shows the current cash position of company is
good. And the cash equivalent for the year 1091000.
Liquidity ratio of company:
The Daimler is more liquid in compare to Tesla as they have enough liquidity to pay off
its debts but simultaneously they are not using that liquidity to pay off its debts.
Cash flow statement of Tesla
Year 31/12/17 31/12/16 31/12/15 31/12/14
Net income -1961400 -674914 -888663 -294040
Operating activities
Depreciation 1636003 947099 422590 231931
Adjustments to net
income 670309 203157 356809 191863
Changes in accounts
receivable -24635 -216565 46267 -183658
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Changes in liabilities 857108 1133602 585548 624537
Changes in inventory -178850 -632867 -369364 -1050264
Changes in other
operating activities -1150226 -978031 -755740 352560
Total cash flow from
operating activities -60654 -123829 -524499 -57337
Investment activities
Capital expenditure -4081354 -1440471 -1634850 -969885
Investments 0 16667 16667 -16710
Other cash flow from
investment activities -223090 -206149 -26441 -3849
Total cash flow from
investment activities -4418967 -1416430 -1673551 -990444
Financing activities
Dividends paid 0 0 0 0
Sale purchase of stock 0 0 0 0
Net borrowings 3385588 1718190 683937 2292092
Other cash flow from
financing activities 369985 160235 -17025 -249417
Total cash flow from
financing activities 4414864 3743976 1523523 2143130
Effect of exchange rate
changes 39455 -7409 -34278 -35525
Change in cash and cash
equivalents -25302 2196308 -708805 1059824
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From the above mention cash flow it has been observed that Tesla is moderate at
maintaining the cash position through the four year. As the analysis shows that company do not
hold a good cash position. In year 2014-15 the net profit shows the amount of (29)
CONCLUSION
In the conclusion it can be said that financial position of company plays an important role
in order to determine the company's effectiveness and ineffectiveness. As it is important to
prepare balance sheet every year to know the actual position of company. The ratio analysis
provide detail information about the operational efficiency and profitability of the company. The
cash flow statement shows the cash position of company and inflows and outflows of company.
The horizontal and vertical analysis shows the changes of current assets for two years.
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REFERENCES
Book and Journals:
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