JB HI FI Analysis

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JB Hi-Fi is a well-known and successful cooperation that majors in house hold appliances, technological goods and the stock shares, the JB Hi-Fi Cooperation was established in 1974 by Mr. John Barbuto (JB), trading from a single store in East Keilor, Victoria. Since then JB Hi-Fi was sold independently in 1983 from there on the business grew. In 1999 another nine stores were opened nationwide. Shortly thereafter In July 2000 JB Hi-Fi was purchased yet again by private equity bankers and senior managements in the opinion of expanding the current growth. In October 2003, JB Hi-Fi was floated on the Australian Stock Exchange. By July 2004, JB purchased the Queensland Clive Anthony chain of stores which specialise in consumer…show more content…
When we look at the current assets we see that cash and cash equivalents has fallen by 47.3% this is the fall of cash at bank and in hand, inventories are the finished goods and have risen by 21.6% and in the (other) we se a rise of 91%, this is a rise in prepayments and deposits. With the non-current assets, plant & equipment has risen 3.4% due to an increase in depreciation, deferred tax is up 48.7% due to increases in provisions and the intangible assets are down 6.2% this is due to the company’s Clive Anthony write-off. In the current liabilities section we see that borrowing has decreased 100.0%, there was a 35,000,000-bank loan (short term) in 2010 with no other short term loans taken in 2011, current tax liabilities are up 20.5% due to an increase in income tax and provisions are up 12.9% due to the company holding more in annual leave accrued and not expected to be taken within 12 months. With non-current liabilities, borrowings has risen 571.7% this is due to the Clive Anthony deal secured by a fixed and floating charge over the Group’s assets, the current market value of which exceeds the value of the loan. Provisions have risen 227.2% mainly due to the increase in the lease provisions and the other financial liabilities rose by 269.6%, primarily due to the interest rate swap. Contributed equity has risen 8.6%, reserves are up 4.0% and the

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