Abstract:
The main objective of this study is to assess the ability of the
enterprise to generate cash and cash equivalents of the
industry. It can use in checking the accuracy of past
assessments of future cash flows and in examining the
relationship between profitability and net cash flow and the
impact of changing prices. The researcher has set objectives
are to know about cash flow, net assets difference, and
liquidity of selected steel industries, to measure the cash
inflow and outflow of the selected steel industries, and to
evaluate and compare the cash position of industries. The
researcher has selected two companies on the basis of the
judgemental sampling method and the researcher has used for
the data analysis like mean, trend analysis, and pair “t” test.
The researcher has found out the review of the cash flow
statement of TATA Steel and SAIL shows the cash inflow
and cashes outflow of both the companies, which represents
similar solvency and liquidity of both the companies. Thus,
investors can invest in both companies because both
companies have a sound cash position. So, it should be easy
to identify the best investment option for investors. The cash
flow statements of the selected two industries of steel sectors
have been analyzed using different parameters. The selected
steel industries are TATA Steel and Steel Authority of India
Limited (SAIL). The comparative evaluation of the cash flow
statement describes the various variables of cash inflows and
outflows of cash of both the industries and the similarity in
inflows and outflows of cash. There are 12 variables that were
very similar and the data of both the industries were available
for the study period. From the analysis, it is concluded that
both industries have more similarities in the cash inflow and
cash outflow of cash flow statement.
