Article | Financial Report of Company
Added on 2020-03-16
21 Pages4654 Words63 Views
FINANCIALMANAGEMENT
JB HifiExecutive SummaryThe performance of any organization is laced with immense pressure and therefore, the investment decision should be taken with precision. There are innumerable factors that need to be considered. In this tune, the key accounting policies come to the forefront. For the purpose of study and report, JB-Hifi is selected and various matters have been analyzed in respect to it. A matter such as investing decision, corporate governance, policies of the board and ratios are computed so that research is made on the project. Moreover, the top investors are selected and an evaluation of the company.2
JB HifiContents1.Introduction.........................................................................................................................................42.Analysis and discussion of JB-Hifi......................................................................................................42.2.Board of director’s overview...........................................................................................................52.2.1.Evaluation of the characteristics of Board...................................................................................82.2.2.Significant financing or investment decisions..............................................................................92.2.3.Key ASX Corporate Governance Principles and Recommendations...........................................92.2.4.External function of audit..........................................................................................................102.2.5.Measures to assure moral judgments.........................................................................................102.2.6.Top Investors.............................................................................................................................113.Evaluation of ratios............................................................................................................................11i.Efficiency ratio..................................................................................................................................11ii.Liquidity ratio....................................................................................................................................12iii.Profitability ratio............................................................................................................................12iv.Leverage ratio................................................................................................................................12v.Market value......................................................................................................................................12vi.Management of cash flow..............................................................................................................134.Conclusion.........................................................................................................................................14References.................................................................................................................................................15Appendix...................................................................................................................................................173
JB Hifi1.IntroductionJB Hi-Fi can be understood as the leading company that provides their customers with products which are required for carrying out their everyday household activities. The company produces electrical items of dailyhousehold use for its customers that consist of television, camera, refrigerator, software and much more. The company also has an altogether separate branch which mainly provides IT related services and also offers consultation to its customers (JB-Hifi, 2016). The presented report has been made by taking into consideration the 2016 annual report of the company. An overall view of the financial report of the company is shown in the article. A thorough introduction of the company followed by the activities of the board is given priority in this report. The corporate governance mechanism is also bought into view by the JB Hi-Fi company report. A deep study of the procedures followed by the company and its working is given the first priority in the report. Ratios of the company are used as an evaluation data to highlight and explain the working and the processes followed by the company. 2.Analysis and discussion of JB-Hifi Appliances related to household utility, video games, CD’s, Blu-rays, hardware and much more are the specialty of the production unit of the JB Hi-Fi with Australia and New Zealand being their main Dominical areas of work in the retail field. The company also provides consultancy services as another branch along with its major technological services. The company has a massive assistance of sixty home branded stores that helps the company is offering its services to its customers across the whole of Australia and New Zealand. Replacement of insurances, selling of the corporate items along with government and also education-related items with included service providence are some of the other tasks in which the company is involved. The company has its headquarters in Melbourne (JB-Hifi, 2016). JB Hi-Fi is also honored with the title of a rapid and successfully developing company in the whole of Australia. The company also pays attention in continuously increasing the quality of the products to cater to the expectations of the costumes. The company maintained low-cost operation throughout the year that helped it to cater marvelous achievements in the dividend, sales, and the profit department as per the financial report of the year 2016. Anincrease in the sales of 8.3% and an increase in the net tax profit by 11.5% in comparison to the last year were recorded by the company with $3.95 billion from sales and $152.2 million form net tax profit section. This low-cost operational plan acts as a method to compare, provide and survive in the competition between 4
JB Hifidifferent companies in the same field (JB-Hifi, 2016). The company through its activities has obtained the faith of its customers which helps it to experiment and expand its characteristics in different departments. Corporate investors always had the upper hand in the investor's department as per the record which proves that its five major investors belong to this category and this brings to light that their percentage of holding is much more significant and more. Involvement of corporate investors means that the company has been and has the capacity to perform continuously and ably (William, 2010). This also shows that the shareholders have much more faith in the company as compared to others in the same field. The proportion of the equity holding of other companies provides enough data to provide an idea of the working procedure of the company (Wagenhofer, 2014). The above data in respect to the matter of equity holding will also be enough to explain the evaluation of equity in case of individual shareholders and shareholding by companies (Peirson et. al, 2015). 2.2.Board of director’s overviewNameGenderAgeEducationRemuneration ($)Career historyGary LevinMaleB.Com and LLB1,56,000In JB Hifi, Gary has been a director and is a member of Remuneration Committeeand Audit and Risk Management Committee. Currently, he operates as the Board of Baby Bunting Group Ltd (JB-Hifi, 2016).Beth LaughtonFemaleBachelor of Economics, FCD, FAICD1,66,093Beth spent 25 years in corporate finance wherein she offered advice associatedwith acquisitions and mergers. Beth was also thenon-executive director and chairperson of Sydney 5
JB HifiFerries, a non-executive director of Port Adelaide Maritime Corporation, non-executive director, and member of Australian Stock Exchange Audit Committee. Thereafter, in June 2012, Beth became the chairpersonof JB Hifi but was later transferred to the position ofremuneration committee (JB-Hifi, 2016).Greg RichardsMaleB. Ec (Hons)2,90,000In 2007, Greg was appointedto the Board and thereafterin 2012, he became chairperson. He also workedat Goldman Sachs for 19 years. Presently, he is the chairperson and member of the Risk and Audit Management Committee andRemuneration Committee.Wai TangFemaleMBA, BAppSc, andGAICD1,15,201In 2015, Wai was appointed to the Board and became the member of the Audit and Risk Management Committee. She pursues extensive experience in the retail industry by serving as senior executive and other roles of the board. She was also the general manager6
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