Financial Analysis of Transurban

Financial
Analysis

FINANCIAL ANALYSIS 1
Introduction
Financial analysis is a procedure of evaluating business, budgets, projects and the
other statements related to finance. It is beneficial to analyse the financial condition and
position of the company. Transurban is a road operator company that develops and manage
the urban toll road networks in the country of Australia. It was established in the year of 1996
and it is registered under the Australian Securities Exchange. The company is the full owner
of City link in Melbourne. The company has ownership interest with the 495 Express Lanes
and it also has an interest of connecting with 95 express lanes projects. The contract of
CityLink was awarded in the year 1995 by the government of Victorian (Transurban, 2018a).
In this report, Transurban has been taken into consideration to evaluate the financial position
or performance of the company. The annual report of the year 2017 and 2018 has been
analysed in this report.
Ratio Analysis
Financial Ratio Analysis
2017 2018
Profitability Ratio
Gross Profit Margin Gross Profit 1,805 1,983
Net Sales 2,732 0.66 3,298 0.60
Profit Margin Net Profit 239 485
Net Sales 2,732 0.09 3,298 0.15

FINANCIAL ANALYSIS 2
Liquidity Ratio
Current Ratio Current assets 1,283 1,821
Current liabilities 2,139 0.60 2,223 0.82
Quick Ratio Quick assets 1234 1446
Current liabilities 2,139 0.58 2,223 0.65
Financial Ratio
Debt Ratio Total Liabilities 18,828 20,835
Total Assets 23,323 0.81 26,426 0.79
Asset Efficiency Ratio
Fixed asset turnover Net sales 2,732 3,298
Average fixed
assets 297.5 9.18 514 6.42
Average Receivable days Receivables 89 90
sales *365 2,732 11.89 3,298 9.96
As per the evaluation of financial condition of the company, it has been seen that the
liquidity ratio is not effective. The liquidity ratio of the company states that it is not able to
pay its liabilities. It has been seen that the amount of current asset is less than the current