FINANCIAL ANALYSIS OF CRANE GROUP AUSTRALIA
ABSTRACT: Crane group has
continued to develop and enhance its manufacturing capabilities. Starting in
the mid 1990s, the company has some success as it revamped its network
distribution operations. This study identifies whether this company has a
strong financial fundamentals andwhether investment in the company will be of a
long term nature. Its financial statements hadbeen analysed during 5 year
period (2004 – 2008). The data were compiled from Annual reports; ASX
historical information; Government reports; Media Items and Website Data. The
analysis will cover company’s recent financial position, performance and cash
flow, including liquidity; profitability; short-term asset management; risk;
leverage and capitalstructure; and trend and horizontal analysis over the last
five years. It shows that the pastfinancial position, performance and cash flow
have no guarantee for future performance. In addition, this report considers
that this company has the fundamental criteria required for long term
investment. It is recommended that the client monitor the position in 6-12
monthin light of the share price at that time, the capital markets and ongoing
evidence of Crane Group Limiter’s sales growth in the weakening economy. It
cannot be stated that the company is immune to an economic downturn. Crane
Group has delivered dividends consistently over the last few years.
Key words: Crane Group,
Liquidity, Profitability, Risk, Solvency and Capital Structure, Trend and
Horizontal Analysis, Sustainable Growth Ratios, and Return to Shareholder
ratios
Author: Verdi Arli
Journal Code: jpakuntansigg100022
