Financial Analysis of CIMIC Group Limited: A Comprehensive Report

HI – 5002 Finance for business
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Contents
Introduction:....................................................................................................................................3
1. Prepare a brief description of the company, outlining the core activities, the market(s) in
which it operates within and any factors in the companies’ history which you consider help
present a “picture” of your company...........................................................................................4
2. Specify ownership-governance structure of the company.......................................................5
3. Calculate the following Fundamental Ratios for your selected company for the past 2 years.
......................................................................................................................................................7
4. Prepare a graph / chart for movements in the monthly share price over the last two years for
the company that you are investigating. Plot them against movements in the All Ordinaries
Index.............................................................................................................................................9
5. Significant announcements which may have influenced the share price of your company...11
6. Financial data of the company...............................................................................................12
7. Weighted average cost of capital...........................................................................................13
8. The debt ratio of the company...............................................................................................14
9. Discuss what dividend policy of the management of the company appears to be
implemented. Explain any reason related to that particular dividend policy.............................15
10. Based on your analysis above, write a letter of recommendation to your client, providing
an explanation of why you would like to include this company in his/her investment portfolio.
....................................................................................................................................................16
Conclusion:....................................................................................................................................17
References:....................................................................................................................................18
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Introduction:
The report related to finance for business has been prepared to enhance the knowledge related to
financial concepts and fundamentals related to an enterprise. The report will include a
description about the company relating to its business operationsandhistory. The company will
be evaluated for the purpose of identifying the financial ratios and ownership structure of the
company. The corporate governance will thus be evaluated for the purpose of getting information
aboutcorporategovernance. The report will then present a graph related to share price structure of
company and the recent announcements and factors leading to fluctuations in share prices will be
discussed accordingly. Further the report will include the description about various cost of
capital associated with thecompany and these costs will beanalyzed for the purpose of making
investment decision. The dividend policy of thecompany will be explained for the purpose of
making informed decision and the letter of recommendation will be made to the investors for
taking investment decision.
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1. Prepare a brief description of the company, outlining the core activities, the market(s) in
which it operates within and any factors in the companies’ history which you consider help
present a “picture” of your company.
CIMIC Group Limited can be recognized as one of the largest infrastructure, mining, services
and public private partnership group which are engaged in the business of construction and
mineral and mining processing operations. The company is also engaged in maintenance services
which are also related with providing engineering services to the customers. The company has its
operations since 1899 and has been listed on the Australian Stock Exchange in 1962. The
corporate head office of thecompanyis situated at Sydney, Australia. The group has been
providing corporate governancestructures, leadership and financial strength to all of its operating
companies which are associated with it. The operations of thecompany are undermined by
integrity, accountability and innovation within the company. The principle adopted by the
company and the management helps in sharing languages and provide identity to CIMIC while
guiding the necessary actions for the company. The operations of the company are focused at
providing safety to its customers at all levels. Te solid foundation of thecompany with the robust
pipeline and the expertise possessed by all itspersonnel in delivering the complex construction
activities in mining and mineral extraction has provided the prospects for strong future which
will enhance the financial position of company (CIMIC Group Limited, 2017).
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