Jb Hifi and Harvey Norman Comparision

3085 Words Aug 30th, 2013 13 Pages
Executive summary-
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
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With a regression of 32% annual income lowered down to $176.3 million (Harvey Norman, 2012).
The graph below is per date 22/01/2013 which shows the present share value of Harvey Norman in regarding a comparison to last 12 months. Surprisingly the value of each share went down since September 2012 which was reached to its lowest point in the end of 2012.

(ASX, 2012)

Industry Analysis-
There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JB Hi-Fi and Harvey Norman both of the companies belong to retail industry that mainly focus on selling of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers. For instance, the same LG refrigerator costing $2500 at Harvey Norman – is available to American consumers from Amazon for just under US$1500. (Keane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I just wanted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement

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