Financial Analysis of Daimler Company

Xinyi Zhu

Bachelor's thesis

Abstract:

This thesis focus on how to evaluate financial condition of Daimler Company by using financial analysis. Financial analysis formulates the assessment of the company’s present and future financial position,which is based on financial statement and accounting data. Financial analysis is used to analyze and evaluate profitability, operation capacity and solvency of enterprises’ financial activities, investment activities and operating activities by adopting a series of specific financial analysis methodology. For managers, they evaluate the company’s financial conditions and operating results by doing financial analysis. It helps managers make important operating decisions, like whether the company should finance, invest or switch to other production. For investors, they decide whether they should invest more capital, transfer shares by analyzing condition of production and management. Creditors make judgment whether the company is worth loaning. The aim of this thesis is evaluating financial condition of Daimler company from 2011 to 2015 by using common-size analysis, financial ratios and pyramidal decomposition. Daimler company is one of the biggest manufacturers of automobile all over the world. But the financial condition of it was not good during 2011 and 2015. It mainly due to the great competition between other company in automobile industry. Daimler should to innovate and pay attention to product’s details of design. On the other way, the awareness of environmental protection of people is greater and greater. It might be another reason why the financial position weaker.

Abstract:

This thesis focus on how to evaluate financial condition of Daimler Company by using financial analysis. Financial analysis formulates the assessment of the company’s present and future financial position,which is based on financial statement and accounting data. Financial analysis is used to analyze and evaluate profitability, operation capacity and solvency of enterprises’ financial activities, investment activities and operating activities by adopting a series of specific financial analysis methodology. For managers, they evaluate the company’s financial conditions and operating results by doing financial analysis. It helps managers make important operating decisions, like whether the company should finance, invest or switch to other production. For investors, they decide whether they should invest more capital, transfer shares by analyzing condition of production and management. Creditors make judgment whether the company is worth loaning. The aim of this thesis is evaluating financial condition of Daimler company from 2011 to 2015 by using common-size analysis, financial ratios and pyramidal decomposition. Daimler company is one of the biggest manufacturers of automobile all over the world. But the financial condition of it was not good during 2011 and 2015. It mainly due to the great competition between other company in automobile industry. Daimler should to innovate and pay attention to product’s details of design. On the other way, the awareness of environmental protection of people is greater and greater. It might be another reason why the financial position weaker.

Keywords

Daimler Company, financial condition, financial analysis methodology, pyramidal decomposition, financial statement.

Keywords

Daimler Company, financial condition, financial analysis methodology, pyramidal decomposition, financial statement.

Language used: English

Date on which the thesis was submitted / produced: 6. 5. 2016

Thesis defence

• Date of defence: 8. 6. 2016
• Supervisor: Josef Novotný
• Reader: Tomáš Tichý

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance