FINANCIAL ANALYSIS

Ratio analysis of civil engineering public company



Financial of civil engineering public company

Part A: About Thiess Company

The company is known as Australia's leading construction, mining and services contractor. Since its incorporation a decade ago company has able to accomplish phenomenal growth in recent years, and have able to enhance its experience, resources with the passage of time (Thiess, 2012). It is because of our quality work that in prevailing economic condition we have able to continue launching quality and innovative construction products for our loyal customer and enhancing the standard of our resources which are highly praised by countries of the globe.

Since its incorporation, the company has not only attempted to become the market leader of Australian economy, but has also expanded its operation across the globe in countries like Indonesia, India, and other countries (Thiess, 2012). However, economic crises of 2008 have raised several challenges for the company that has had a negative impact on its annual performance.

For instance, since 2010 company has acquired additional loans from different financial institution, which has increased the debt percentage of the company and reduced the value and importance of its valuable assets. In addition to this, for the first time in their history company has ended up having negative operating profit in year 2010, 2011 but managed to sustained its position by earning positive operating profit in 2012.

Part B Nature of reporting entity

According to the accounting concept of SAC 1 there are diversified concepts of reporting entity are present in prevailing legislation and policies that identify entities that should provide accurate and reliable general-purpose financial reports for its shareholders, stakeholders and other members of the organizations (AARF, 2006). Meanwhile, these legal concepts are merged into legal entity concept that is used for private companies operating in the region, and a broad concept is used for companies that are operating in public sectors.

Both legal and broad concept of entity requires company to generate financial reports, however, private sectors that are operating under legal entity concept are instructed to report only those transaction that have legal status. On the other hand, in public sector companies are instructed to report the outcome of every transaction in their financial reports (AARF, 2006). Based on these concepts, Thiess is a public limited company and is viewed as a reporting entity, which has the power and authority of controlling and managing every decision, directly or indirectly related to the financial and operating aspects of another entity. Moreover, being this type of entity Thiess is liable for generating accurate and authentic financial reports containing the precise information of every transaction that has been incurred by company and other groups of the company.

Part C

Calculation of horizontal trend analysis of company income statement

 

 

2012

Inc/dec

Percentage

2011

Inc/Dec

Percentage change

2010

Assets

000's

000's

000's

 

Cash and cash equivalent

125443

-2789

-2%

106026

-22206

-17%

128232

 

Account receivables

187314

42086

29%

146639

1411

1%

145228

 

Inventory

69721

-25942

-27%

26888

-68775

-72%

95663

 

Other

40563

35399

685%

16359

11195

217%

5164

 

Total current assets

423041

48754

13%

295912

-78375

-21%

374287

 

property plant and equipment

252286

-51266

-17%

296644

-6908

-2%

303552

 

intengibles, invest's and provision

55365

-34654

-38%

72754

-17265

-19%

90019

 

Total non current assets

307651

-85920

-22%

369398

-24173

-6%

393571

 

Total Assets

730692

-37166

-5%

665310

-102548

-13%

767858

Liabilities

0

 

 

Payables

174094

283

0.16%

134124

-39687

-23%

173811

 

Interest bearing liabilities

51126

38464

304%

52906

40244

318%

12662

 

Provisions

30418

6374

27%

29224

5180

22%

24044

 

 

 

Total current liabilities

255638

45121

21%

216254

5737

3%

210517

 

Interest bearing liabilities

179767

-93554

-34%

193088

-80233

-29%

273321

 

Other provisions

42223

-8375

-17%

50724

126

0%

50598

 

Total non current liabilities

221990

-101929

-31%

243812

-80107

-25%

323919

 

Total liabilities

477628

-56808

-11%

460066

-74370

-14%

534436

 

 

 

shares

202151

31768

19%

170383

0

0

170383

 

retained profits

50913

-12126

-19%

34861

-28178

-45%

63039

 

Total shareholder equity

253064

19642

8%

205244

-28178

-12%

233422

 

Total liabilities and net worth

730692

-37166

-5%

665310

-102548

-13%

767858

Calculation of horizontal trend analysis of company Income statement

Income

2012

Inc/Dec

Percentage

2011

Inc/Dec

Percentage

2010

 

Net_Contract_Income

1060867

-49090

-4%

1017415

-92542

-8%

1109957

 

Cost of ...