Financial Ratio Analysis: Daimler Group and Bmw Group Essay
Financial Analysis: A comparison between Daimler Group and BMW Group
In this report, we calculate and compare the financial performance between Daimler Group and BMW Group in two financial years 2010-2011. The objective is to analyse the financial performance of both groups and identify our company’s position, thus suggesting the potential areas for improvement for our company.
In this report, we analyse and compare the financial performance between BMW Group and Daimler Group in 2010 and 2011 using financial ratios analysis. The BMW Group and Daimler Group are two of Germany’s largest industrial companies and are among the most successful car and motorcycle …show more content…
The operating cycle is expressed as an indicator of management efficiency. It has three components of inventory turnover period, trade receivables period and trade payables period. These come together to form the complete measurement of operating cycle days. This hasn’t changed for Daimler over the past two years and has increased slightly for BMW. It takes BMW a shorter period to generate revenue from its purchase of inventory than it takes Daimler.
Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations. In general, the greater the coverage of liquid assets to short-term liabilities the better it is, because it gives a clear signal to whether a company can pay its debts that are due in the near future and still be able to fund its ongoing operations.
The current ratio measures