Jb Hifi - Balance Sheet Report

Based on the income statement and balance sheet, we can get the cash flow statement for year 2002, 2003 and the first quarter of 2004. From the cash flow, it is obviously see that the main use of fund is for operations, materials purchasing, wages payment, interest payment etc. While the source of fund is from financing, bank loan and trade notes payables.

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

JB Hi-Fi is an entertainment and consumer electronics chain store, providing a range of branded home electronic products and music records. The electronic industry is experiencing growth over the last few years mainly due to the introduction of a handful of electronic gadget which captures the attention of consumer. However, this growth focused on a few products such as smart phones, tablet, and music player while the rest of the products are slowing in terms of growth.

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

Comparison: Here the industry average is 5.26 times, compared to JB Hi-Fi’s figures of 11.25 (2011) and 11.03 (2010) times. This indicates that JB Hi-Fi is able to generate greater sales from its fixed assets, when compared to the market average. Generally, firms with a higher fixed asset turnover are successful in getting the most out of their assets, and in turn are able to generate higher revenues. Here JB Hi-Fi outperforms its sector, and this indicates that it is in a strong position to generate sales from the assets it has available.

The company position is strong enough so its better that company should use debt financing instead of equity financing.

e. The largest source of cash from financing activities is from Proceeds from Long-Term Borrowing at $498 million. p. 42

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.

‘Cash and cash equivalents’ include certain short-term investments and, in some cases, bank overdrafts. Like IFRS, ‘cash and cash equivalents’ include certain shortterm investments, although not necessarily the same short-term investments as under IFRS. Unlike IFRS, bank overdrafts are considered a form of short-term financing, with changes therein classified as financing activities. The statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. Like IFRS, the statement of cash flows presents cash flows during the period, classified by operating, investing and financing activities. The separate components of a single transaction are classified as operating, investing or financing. Unlike IFRS, cash receipts and payments with attributes of more than one class of cash flows are classified based on the predominant source of the cash flows unless the underlying transaction is accounted for as having different components. Cash flows from operating activities may be presented using either the direct method or the indirect method. If the direct method is used, then an entity presents a reconciliation of profit or loss to net cash flows from operating activities; however, in our experience practice varies regarding the measure of profit or loss used. Like IFRS, cash flows from operating activities may be presented using either the direct method or the indirect method. Like IFRS, if

Shareholder’s equity would be lower than that shown in 1982 ($318,000) because the company has to pay off interest and principal for many loans. There will be little money left for shareholder’s equity.

JB Hi Fi Limited’s (referred to as JBH or the company throughout this report) financial performance for the two years ending 30th June 2009 can be evaluated using the ratios presented in Table 1 below. Overall, considering the economic environment during this period with the Global Financial Crisis, JBH has continued to maintain exceptional profit margins and return to shareholders. The company achieved revenue growth of 27%, earnings before interest and taxes (EBIT) growth of 39% and net profit after taxes (NPAT) growth of 45% for the year ended 30 June 2009 (JBH Annual Report, 2009).

In this report, we are going to analyse the financial performance of JB Hi-Fi Limited (JBH), over the past three years (2012 to 2014), by calculating a series of ratios, using different historical data provided by audited financial reports. A period of three years has been selected for the financial analysis of the company as trend results generated over several periods are much more meaningful than that from a single year balance sheet and income statements. Moreover, after having calculated the ratios, we will then draw conclusions on the past performance of the company and finally benchmark with of one its main competitors, Harvey Norman.

Since the net income reported in the statement of cash flows is transferred from the profit and loss account which is the difference between revenue and expenditures all of two types;

JB Hi-Fi is a large Australian discount retailer of CDs, DVDs, video games, Blu-ray Discs as well as other consumer electronics. The company was originally headquartered in Victoria but later on expanded throughout the Australian provinces and eventually into New Zealand. As a retailer, JB Hi-Fi has managed to expand its product range to include computers, computer games, mobile phones as many other accessories despite various threats posed by the internet technology (The Intelligent Investor,2012).The company was established back in 1974 by John Barbuto in the Melbourne surban of Keilor East. He then sold the company sometime in 1983 to David Rodd and Richard Bouris who then proceeded to expand into a chain of 10 stores in Sydney and Melbourne with an annual turnover of $150 million by the year, 2000 when the company sold a majority of its shareholding to a private equity. The company was then listed in the Australian Stock Exchange in 2003.Initially, JB Hi-Fi specialized in Hi-Fi equipment. As the popularity of the vinyl records reduced in the 1990s, the company the company switched to CDs. The company specializes in the sale of imported CDs mainly sourced from the U.K and the U.S.A. The company has diversified to the sale of LCD and Plasma TVs, digital camera, audio/visual, in-car entertainment, DVD movies, portable audio, other gadgets as well as information technology. At the moment, the company is the leading retailer of Apple Computer products in