that is a financial managment topic, world count shouldbe around 1000 and all the calculation part...

Question

that is a financial managment topic, world count shouldbe around 1000 and all the calculation part should be done accordingly as required, choosen company is "JB HIFI" australia, calculations and data should be done for five financial years, which is available online.

Robert · Accepted Answer

JB Hi-Fi Limited (JBH) 
Introduction 
JB Hi-Fi is a retailer company for discounted home entertainment products. The industry is 
Specialty Retail and sector is Consumer cyclical. The products focused by the company are 
electrical goods, consumer electronics and software including games, movies and music. The 
operational structure of the company is mainly standalone and shopping centers along with 
online stores across New Zealand and Australia. According to annual report of the company, it 
has further plans to invest in store network, online business as well as customized solution 
business. The company expects to perform extremely well with this strategy supported by strong 
promotional scheme. 
The Stock performance of the company over the period can be seen in the chart provided below. 
The stock has outperformed the market and the sector over the last few years.
Source: MorningStar
Financial Analysis 
The financial performance of the company has been good over the past years. The analysis of the 
company based on profitability, liquidity, efficiency and leverage is discussed below. 
Profitability 
Gross profit of the company has increased from 6.15% to 6.66% as reported at the end of 
financial year 2016. This reflects a steady growth in the revenue generated by the company and 
business strategy applied by the company for sustainable growth and increase in market share. 
The profitability of the company has also increased accordingly which is reflected by the 
increase in net profit margin of the company which has increased from 3.355 to 3.86% over the 
same period of time. The growth in organizational value is reflected in the performance of the 
stock which has outperformed the market and sector over the past years. 
However, the Return on Invested Capital has (ROIC) and Return on Equity (ROE) has shown 
downward trend lately because of the major investments done by the company and increase in 
Capital. ROE has decreased from 56.72%to 37.6%.

that is a financial managment topic, world count shouldbe around 1000 and all the calculation part should be done accordingly as required, choosen company is "JB HIFI" australia, calculations and data...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment