Managing Finance Research Paper 2022

Running head: MANAGING FINANCE
Managing finance
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Table of Contents
Introduction......................................................................................................................................2
Overview of Aurizon Holdings Limited..........................................................................................3
Sydney Airport.................................................................................................................................3
Compartive Financial statement analysis........................................................................................4
Profitability ratio analysis comparison between Aurizon and Sydney Airport...............................4
Liquidity ratio analysis comparison between Aurizon and Sydney Airport....................................7
Investment ratio comparison between Aurizon and Sydney Airport...............................................8
Capital structure of Aurizon and Sydney Airport............................................................................9
Historical Weighted Average Cost of Capital...............................................................................10
Discounted cash flow technique....................................................................................................10
Relative Valuation of Aurizon and Sydeny Airport......................................................................12
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14

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Introduction
This paper focus on the subject of key finance that specifically acknowledge the concepts
of finance such as financial statement analysis, the concerned risk analysis and return, capital
structure and the valuation of shares to the specified two companies named as Aurizon Holdings
Limited and SYD Airport. The aim of this paper to evaluate the comoany’s financials and make
understand the investors wheater the company’s position is good or bad for investment.
Overview of Aurizon Holdings Limited
Aurizon holdings Limited, is working as rail freight, which is publicly listed comoany in
Australia. This company was owned by Government of Queensland, in the late 2010, it was
being listed on Australian Securities Exchange. It is the world’s largest rail freight company and
top 50 ASX company. In every year, the company usually transports more than 250 million
tonnes of Australian commodities, connecting miners, primary procedures and industry with
international and domestic markets. The company provides customers integrated freight and
logistic solutions over the extensive national rail and road network. The company also preserves
and operates coal rail network, which is one of the world’s largest. The company also helping the
regional Australia by providing the bulk commodities to the world. Foe achieving this the
company has three major avenues: Network, Coal and Bulk. The success and value of the
company is linked with the key demand drivers of the Australian resources sector in the global
markets and the ongoing strength of the Australian economy. The vision of the company is to be
the first choice for the solution of bulk commodity transport. To grow the regional Australia by
delivering bulk commodities to the world (annualreports.com, 2020).

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Traded symbol: AZJ. ASX
Market price: 4.5700
Sydney Airport
Sydney Airport/ Kingsford Smith is an international airport in Sydney, Australia. The
airport is listed with the ASX, Sydney Airport Group. It is the world’s largest continuously
operated commercial airports. The company vison is to provide the world class airport
experience and foster the growth os Sydney airport oer the advantages of people. It indicates the
world’s most popular infrustracture, this sirport provides an international gateway and transport
network which ususlly connects more than 90 destination all over the world. It also make a
important involvement to the local and national economies, generating $38 billion in an
economic movement a year. This contributaion is equivalent to 6.8% of the NSW economy and
translates into more than 338500 for the people of Sydney. The location results both the business
and tourism which helps to increase the major strength for the society.
Trade symbol: SYD
Market price: 6.28
Compartive Financial statement analysis
The paper researches a comparative financial statement analysis for both the company.
Through the financial statement analysis it takes some of the ratio evaluation like profitability
ratio, liquidity ratio and investment ratio.