Financial Evaluation of Jb Hifi's Performance

According to AASB 116 Property, plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report.

The purpose of this report is to compare the financial report of the two ASX listed companies they are Harvey Norman and JB Hi-Fi. It provides an analysis and evaluation of the current and previous profitability, liquidity and financial stability of both companies. Methods of analysis include financial ratio analysis for example profitability and performance ratio, liquidity ratio, financial and stability ratio by reviewing the financial report of two companies. It also review the industry analysis, highlighting the size of the industry in Australia, the level of competition and the significant environmental factors facing by these two particular companies and the industry as a whole. Further, it discusses about the

The current ratios within the years 2013-2014 have improved for JB Hi Fi in 2013 as it stood at 1.27:1 whereas in 2014 it had increased it’s performance to 1.64:1. This has improved due to the current liabilities being reduced in 2014, which lead to the improvement of the total current assets. This ratio is mainly used to give an idea of the company’s ability to pay back its liabilities within its assets, which includes cash, inventory and receivables. In 2014 it showed a higher current ratio, which demonstrates that the company is more than capable in paying its debts. This gives a sense of efficiency of a company’s operating cycle to turn its product into cash. In the financial report the shareholders use this ratio in determining whether

The financial analysis of a firm’s performance begins with their Return on Equity (ROE), which measures how effectively shareholder funds are being invested to generate profit. Collins Foods Limited (CKF) has seen a doubling of ROE since 2014. Table 1 shows it has risen sharply over 2014-16, from 8.51% to 17.12%, an increase of 8.61%. Compared to a competitor, Retail Food Group (RFG), which saw growth in ROE from 11.89% to 15.9%, and outperformed CKF in 2014, it’s clear CKF is outperforming the market on this metric due to high growth in recent years. This indicates that shareholders investing in CKF are receiving more returns for their investment compared to RFG. The forces facilitating these differences in growth rates and overall ROE can

Another analysis that is beneficial to evaluate the financial statement of the hospital is current ratio. It is a useful indicator of cash flow of the organization. Current ratio indicated the ability of the organization to pay obligations within a timely way. At Holy Cross Hospital, the target goal for current ratio is at least 1.5, indicating that the hospital is able to pay back any obligations from its current assets. According to the analysis from the financial statement, Holy Cross Hospital’s current ratio for fiscal year 2014 is 1.80 and fiscal year 2015 is 1.70, indicating that they are above the target goal. This indicated that the hospital has a good cash flow and is able to pay back any obligations within timely manner.

Net income decreased by 38%, coming down to $835 million, mainly due to impairment in the IPTV product which was discontinued and a strategic alliance was formed with Comcast to develop a new product. Substantial cash flow generation led to reduction in outstanding debt, with new investments in the newtwork. The cash provided by operating activities also increased by 6%. Free cash flows also increased by 2% summing up to $1705 million. The liquidity position of the organization is also relatively stable compared to previous year.

The DuPont identity provides insight into factors affecting the return on equity (ROE) of a company. The DuPont equation decomposes ROE as net margin by multiplied asset turnover times’ asset to equity ratio. Net margin indicates the operating efficiency (Stock Pup, 2012). Asset turnover measures the total asset use efficiency and the asset to equity ratio is a measure of financial advantage. Leucadia National DuPont identity calculates for the years 2009, 20101 and 2011 to 1.88%, 12.9% and 55.39% respectively. We were unable to calculate the DuPont identity for Berkshire Hathaway from their income statements and balance sheets for the last three years as the inventory and cost of goods sold fields were blank. However, if we look at Table 1 we can see the DuPont identity in graph format for Berkshire Hathaway (Stock Pup, 2012).

Companies are required to submit financial statements at least yearly. These statements are used by number of groups and individuals ranging from internal managers, shareholders, prospective investors, suppliers, financial institutions and even the government. Each has it own reason for reviewing the statements, but all are able to get their desired information from the financial statements and reports. The purpose of financial statements is to offer and support information about the company’s financial performance, position and any changes during a specified time frame. The three main statements are the income statement, the balance sheet and the statement of cash flow, the 10K is also included in the yearly submissions. Analyzing this information and including some general acceptable accounting ratios can provide the user more awareness of the company’s financial health. This paper will look at the financial health of the Haemonetics Corporation by reviewing the horizontal and vertical analysis of the income statement, balance sheet and selected ratios.

Financial Leverage Ratio has decreased a little bit from 2.4520 in 2013 to 2.4513 2014 and we can tell that financial leverage barely changed.

The following below are the explanations of profitability, indebtedness and market ratios of Ajinomoto (Malaysia) Berhad based on the latest three historical years of annual report of the company which will be following a financial year that starts from the 1st of April to 31st of March in the following years which is calculated annually for each financial report..

In this we are going to analyze important key ratios such as profitability, liquidity, debt management, asset management.

Accordingly Jensen (1976) states that, the leverage increased is expected to reduce and lower disclosure because leverage helps control the free cash flows problem and agency costs are also controlled. Stock returns are the change in stock price over the year. The results showed low mean and standard deviation of 0.03 percent and 0.04 percent. In the same way Griffin et al (2010) found a negative association with sock return and the quality of information revealed. The mean of ROE is 0.17 percent which is low together with the standard deviation of 0.20 percent, which is also recognized by Cheng and Courtenay (2006); Gul and Leung (2004). ROA is also low, which means that it is not substantial. Although refuted by Dhaliwal et al (2011) as he believes that through expanding the performance, the can amplify the transparency of information.

Just looking the figure we can say that company is doing well. 2011 is more favourable than 2011, it is simply because ROE is more in 2011. Furthermore in 2011,

Now, let’s look at another ratio which is key to investors, the Return on Equity Ratio. The return on equity ratio gives an idea of profitability of owner investment and the performance of a company’s management team. Net Income for 2015 fiscal year was $30,060,000. The average common stockholder’s equity in 2015 is $266,439,500. The Return on Equity or ROE for 2015 is 11.28%. Net income in 2014 was $34,256,000. Average common stockholder’s equity in 2014 was $255,762,500. The ROE for 2014 was

Financial Analysis ................................................................................................................................ 12 4.1 4.2 Recent Financial Performances................................................................................................... 12 DuPont Return on Equity (ROE) Analysis .................................................................................... 13 Importance of ROE .............................................................................................................. 13 ROE analysis for BreadTalk & its competitors..................................................................... 13 Net Profit Margin (Net Income / Net Sales) ........................................................................ 16 Total Asset Turnover (Net Sales/ Total Assets) ................................................................... 17 Financial Leverage Multiplier (Total Assets/ Common Equity) ........................................... 18 Return On Equity ................................................................................................................. 19