JB HI FI Analysis

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.

This report provides a comprehensive analysis of JB Hi Fi (JB)’s strategic management and operations. The current global uncertainty over recent months have provided a challenge for the retail sector and this report will address strategies JB implemented which allows them to continue growing. Section 2, strategic analysis focuses on the external and internal environments, using the PESTEL and Porters 5 forces

JB Hi-Fi Limited (JBH) is a specialty discount retailer of branded home entertainment products. The group's products fall into consumer electronics, car sound systems, music, Digital Versatile Disc’s (DVD’s) and white-goods. JB Hi-Fi Limited achieved revenue growth of 17%, EBIT growth of 23% and NPAT growth of 26% for the year ended in 30 June 2010

After reviewing the Balance sheet I have a concern regarding the Current and short term liabilities. Creditors/ trade payable is payment yet to be made for goods already received, if this continues to rise then it will effect the business profit and less stock will have to be ordered so repayments can be made. Bank overdrafts also continued to rise and in the long-term the business will be paying greater interest, which will again eat into the profit. Both increased quite a great deal from the last year-end. If this continues then the business will get into bad debts and owe too much that it will end up having to sale its assets to survive. Finally I can see that due to the above issues and other issues the net current assets/ working capital has decreased so therefore the business is less value then it was a year ago. If the business is worth £1 million now, this could soon decrease within another year.

JB Hi-Fi is an Australian retailer of consumer electronics it began in 1974, where Mr. John Barbuto (JB) established JB Hi-Fi in East Keilor, Victoria. His main focus was to deliver a special range of Hi-Fi and recorded music at the lowest prices in Australia and New Zealand. Mr. John Barbuto sold the business in 1983 and by 1999 another nine stores were opened. In July 2000 private equity bankers and senior management purchased JB Hi-Fi. In October 2003, JB Hi-Fi was floated on the Australian Stock Exchange. This company still maintaining Barbet’s original philosophy, JB is one of Australasia 's fastest growing and largest retailers of home entertainment.

Hi-Value Supermarkets became a division of Hall Consolidated, a privately owned wholesaler and retail food distributor in 1975. Hi-Value Supermarkets is considered to be the smallest of the three supermarkets chains owned by Hall Consolidated, with a small store distribution for its category. Hi-Value was the number one or two ranked supermarket chain in each of its trade markets (as measured by market share).

Company: JB Hi-Fi limited has achieved sales of $3.65 billion in the financial year of 2015, with a total sales growth of 4.8% and comparable sales growth of 2.9% on last financial year. In 2015 the net profit tax has increased 6.4% to $136.5 million, earnings per share increased 7,4% to 137.9 cents per share and the hole dividend for the 2015 financial year increased 7.1% on the before financial year to 90.0 cents per share. JB HI-Fi Capital Management area has conducted regular revirews of all the aspects of its capital structure with the main focus on increasing all returns to its

JB Hi-Fi was established in 1974 by Mr. John Barbuto. He opened the business with only a single store in Melbourne, Victoria. He had one main vision when he started up the business and that was to sell a high-quality range of Hi-Fi products at the lowest prices possible in Australia. In these first years, the JB Hi-Fi business concentrated on the music market selling Hi-Fi equipment and vinyl records.

John (CEO) and Jean Abernathy (CFO), a husband and wife team, owned and operated J&J Electrical Contractors, Inc. (J&J).1 J&J performed commercial, industrial, residential, and public electrical-contracting work. Electrical work

JBLU currently trades around $26 a share. Its market cap stands at $8.2 billion, making it the fifth largest airline in the US. JBLU has experienced positive growth for the past three years. JBLU also faces some difficulties because of its rapid growth rate. JBLU holds a P/S ratio of 1.9 against the industry average of .8. A high P/S suggests the stock may be overvalued. JBLU generated $912 million in free cash in 2014. This increase in cash is allowing JBLU to increase its liquidity. Revenues are expected to increase by 15% in 2015 and 2016, but net income is projected to increase

He was able to immediately expand the number of outlets and deliver profits to the parent company. Tony Kitchner expanded JFC into 8 new markets and 18 new stores between 1994 and 1996. His strategy included a full compliment of marketing and human resource divisions. Kitchener’s strategy was to ‘plant flags’ as a first-mover concept and target expatriates. Kitchner tried to target expatriates (a niche market) by establishing outlets in other countries such as the Middle East which would allow the company to gradually enter into unfamiliar markets and give them time to develop their appeal to a larger base. The risk of this strategy is that it would depend too much on Filipino expatriates to patronize Jollibee’s outlets. Mr. Kitchner also failed to analyze the buying decisions of expatriates to determine how lifestyle changes in their adopted country could impact their needs and wants.

Each year had an increase to total assets. It increased by 16,304,000,000 from 2014 to 2015 and then by another 13,032,000,000 from 2015 to 2016, for a total increase of 29,336,000,000 over the two years listed. The largest account increase from 2014 to 2015 is in the Other Assets account, it increased by 45,529,000,000; however, the main increase for the year ending on 12/13/2016, and the largest increase for that year, is in the Current Assets - for an increase of 5,874,000,000.Each year also had an increase in liabilities, with an increase to total liabilities of 12,364,000,000 in 2014 to 2015, and again by 12,494,000,000 in 2015 to 2016. There was the largest increase in noncurrent liabilities, with an increase of 7,148,000,000, and in

To conduct this analysis, we took total assets as the base unit, on which other components were evaluated. In 2014, the total non- current assets, have the highest percentage of total assets of 78%, in which property, plant and equipment is the highest contributor, at a percentage of 29% of the 78%. After that comes the total non-current liabilities component at 37%, in which the highest contributor is the non-current interest-bearing liabilities at 31% of the 37%.

Since the company has a reorganization value of P760,000 but the assets have a market value of only P700,000 (P90,000 + P210,000 + P400,000), and account entitled Reorganization Value in Excess of Amount Allocable to Tangible Assets must be recorded for P60,000.

• In 2007, Danone had a hard time with both high accounts receivable and payable, as well as high other current debt, which resulted in a very negative OWC. - Possibly change in OWC policy in 2008 The high ratio in 2008 was mainly from the increase in assets held for sales and decrease in current debt. (explained in following slides) Except 2007, the inventories, accounts