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Analytical Discussion on ASX Registered Company with Financial Ratio Analysis

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Added on  2023-04-26

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In this document we will discuss about Financial Ratio Analysis and below are the summary points of this document:-

  • This report analyzes the financial ratios of JB Hi-Fi, an ASX registered company, to provide an overview of its financial condition and help investors make investment decisions.

  • The report covers liquidity ratios, solvency ratios, and profitability ratios.

  • The report concludes that the company is performing well as it has a good profitability ratio, generating a considerable proportion of gross profit, and a high return on capital employed.

  • However, the debt-to-equity ratio is higher than the ideal ratio, indicating a potential risk.

Analytical Discussion on ASX Registered Company with Financial Ratio Analysis

   Added on 2023-04-26

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Analytical Discussion on ASX Registered Company with Financial Ratio Analysis_1
Contents
Introduction.................................................................................................................................................2
Analysis........................................................................................................................................................2
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7
Analytical Discussion on ASX Registered Company with Financial Ratio Analysis_2
Introduction
The report brings out an analytical discussion on an ASX registered company with the help of
financial ratios. The aim of the report is to provide an overview of the company`s financial
conditions of JB Hi-Fi. This analysis will help to induce the investors by analyzing the financial
statements. Ratio analysis will help the investors to make an appropriate discussion on whether
to invest in the company or not. It is a tool that analyze the financial conditions of the company
and helps the investors to look into the company`s performance. The report considers all the
relevant financial ratios that can ultimately help the investors to make their decision regarding
investment (Annual report, 2017).
Analysis
Financial ratio is an beneficial indicator of organization`s performance. These ratios are
calculated from the information given in the financial statements. It is used to analyze the trends
and compare the organization`s ratios with the industrial ratios (Breitenlechner, Scharler, and
Sindermann, 2016).
Liquidity ratio
This ratio indicates whether company have sufficient current assets to pay off its obligations. It is
used to determine debtor`s ability to pay the debt obligation without using any external
assistance. Here, in this report, current ratios such as liquidity ratio and current ratio has been
calculated.
Liquidity ratio 2017 2018
Current ratio 1.3 1.3
Quick ratio 0.3 0.3
Analytical Discussion on ASX Registered Company with Financial Ratio Analysis_3

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