Trend Analysis of JB Hi-Fi Limited: Financial Performance and Ratios

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
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1ACCOUNTING AND FINANCIAL MANAGEMENT
Table of Contents
I. LIST OF FIGURES..............................................................................................................2
II. LIST OF TABLES..............................................................................................................3
III. LIST OF FORMULAS......................................................................................................4
EXECUTIVE SUMMARY......................................................................................................5
1. INTRODUCTION...............................................................................................................6
2. COMPANY INFO AND NATURE OF THE BUSINESS...............................................6
3. TREND ANALYSIS............................................................................................................7
3.1 SALES ANALYSIS............................................................................................................8
3.2 PROFIT/LOSS ANALYSIS..............................................................................................9
3.3 ASSET ANALYSIS..........................................................................................................10
3.4 LIABILITIES AND EQUITY.........................................................................................11
4. RATIO ANALYSIS..........................................................................................................13
4.1 THE DATA.......................................................................................................................13
4.2 PROFITABILITY RATIOS...........................................................................................13
4.3 EFFICIENCY RATIOS...................................................................................................14
4.4 LIQUIDITY ANALYSIS.................................................................................................15
4.5 MARKET PERFORMANCE ANALYSIS....................................................................15
5. OVERALL ANALYSIS....................................................................................................16
6. LIMITATIONS OF ANALYSIS.....................................................................................17
7. CONCLUSION..................................................................................................................18

2ACCOUNTING AND FINANCIAL MANAGEMENT
References...............................................................................................................................19
Appendix.................................................................................................................................22
I. LIST OF FIGURES
Figure 1: JB Hi-Fi revenue........................................................................................ 9
Figure 2: Year Wise comparison of Income, Expenses and Operating Profit ............. 10
Figure 3: Year Wise absolute change percentage comparison of EBIT, Profit before income
tax expense, and total Profit the year..............................................................................11
Figure 4: Development of current, non-current and total assets 2016 to 2018 (base 2016)... 12
Figure 5: The development of the liabilities and the total equity with 2016 as base (100%)
........................................................................................................... 13
Figure 6: Development of current assets (CA) with the year 2016 as base (100%) ............ 13

3ACCOUNTING AND FINANCIAL MANAGEMENT
II. LIST OF TABLES
Table 1: Revenue, Expenses and the resulting Operating Profit of the years 2016 to 2018.... 5
Table 2: EBIT, Profit before income tax and total profit of the year...................................... 6
Table 3: Values of the current assets, non-current assets, and total assets of JB Hi-Fi...........8
Table 4: Values of the current liabilities, non-current liabilities, total liabilities and the total
Equity of JB Hi-Fi in the years 2016 to 2018.......................................................................... 9
Table 5: Probability ratios ...................................................................................................... 12
Table 6: Efficiency ratios ...................................................................................................... 13
Table 7: Liquidity analysis..................................................................................................... 14
Table 8: Market performance analysis................................................................................... 14

4ACCOUNTING AND FINANCIAL MANAGEMENT
III. LIST OF FORMULAS
Return on Equity = Net Income
Shareholders Equity
Return on Asset = Net Income
Total Asset
Gross Profit Margin = Gross profit
Net Income
Asset Turnover Ratio = Net Income
Total Asset
Accounts Receivables Ratio = Net Credit Sale
Average Accounts Receivables
Accounts Payables Ratio = Net Credit Purchase
Average Accounts Payables
Current Ratio = Current Asset
Current Liabilities
Quick Asset Ratio = Current Asset−Inventories
Current Liabilities
Dividend Pay-out Ratio = Dividend of the year
Net Income
Dividend Coverage Ratio = Net Income
Dividend of the year
Dividend Yield Ratio = Dividend per share
Market Value Per share

5ACCOUNTING AND FINANCIAL MANAGEMENT
EXECUTIVE SUMMARY
The report deals with the overall financial performance of JB Hi-Fi limited and accordingly
the trend analysis is performed with the help of the various parameters. The strength and the
weakness of the company is hereby identified according with the help of the ratio analysis.
As per the annual report of the last three years of the company which are the 2016, 2017 and
2018 is performed. The company’s strong performance gas been identified in a detailed
manner in this conducted study.