Financial Statement Analysis of CIMIC Group Limited

Running head: FINANCIAL STATEMENT ANALYSIS
Financial statement analysis
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1FINANCIAL STATEMENT ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
1. Core business activities...................................................................................................2
2. Major changes in the financial performance...................................................................3
3. Key financial ratios.........................................................................................................3
4. Overall assessment of company......................................................................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

2FINANCIAL STATEMENT ANALYSIS
Introduction
CIMIC Group Limited is an ASX listed company and is in existence since the year
1989 with more than 50000 employees over 20 countries. The company is the member of
S&P/ASX 100 index, FTSE4Good and Dow Jones Sustainability Australia Index. The
company is well known for its integrity principles, innovation, delivery, accounting and is
underpinned by the safety. These principles are underpinned by continuous factors focussing
on safety that is fundamental for the operation of the company. The mission of the company
is to create sustainable returns for the shareholders through delivery of the projects to clients
taking into consideration the rewarding, fulfilling and safe careers for the employees. Further,
the company supports collaborative and united culture where the employees are aligned for
achieving the superior performance (Cimic.com.au 2018).
Discussion
1. Core business activities
The company is mainly engaged in providing mining, construction, engineering,
mineral processing, operation, concession and maintenance services for property, resources
and infrastructure markets. It operates through mining and mineral processing, private public
partnership, residential and commercial, services, engineering and HGL segments. The
company is further engaged in construction of rails, roads, tunnels, buildings, airports, and
various social projects for infrastructure. It is also engaged in resources, energy and water
facilities, gas and oil structures, infrastructure projects like geothermal energy, installations of
waste to power, utility-scale wind and renewable energy. Apart from these the company also
provides asset management, maintenance, operation and facilities as well as ICT solutions

3FINANCIAL STATEMENT ANALYSIS
and telecommunication services to commercial and industrial clients and governmental
agencies Cimic.com.au 2018).
2. Major changes in the financial performance
Major changes regarding the financial performance of the company were increase of
revenue by 24% that was generated through solid contributions from the core businesses of
the company. Further, the net profit after tax was increased by 21% and the free operating
cash flow was increased by 12%. These increases were supported by improved rating in
investment grade. These were achieved due to exceptional work of 50,000 employees
(Cimic.com.au 2018).
3. Key financial ratios
Ratio Formula 2017 2016 2015 Interpretation
Profitability
ratio
Net profit
margin Net profit/Sales * 100 5.23 5.35 3.89
Net profit margin that
is also known as the net
margin states the
amount of net income
the company can
generate with the total
sales (Vogel 2014). Net
profit of the company
has been increased over
the years from 2015 to
2016. However, it
slightly reduced in
2017 as compared to
2016 (Cimic.com.au
2018).