Finance Portfolio Management

Running head: FINANCE PORTFOLIO MANAGEMENT
Finance portfolio management
Name of the Student:
Name of the University:
Author’s Note:
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1FINANCE PORTFOLIO MANAGEMENT
Executive Summary:
The performance and financial structure of JB Hi-Fi for the five financial years are evaluated in
the assessment. Furthermore, calculations of Bond and share price relatively provided adequate
information regarding the use of debt capital by JB Hi-Fi to improve its operation. Additionally,
the financial ratios JB Hi-Fi compared with industry average to determine whether the
organizations current operation condition is in accordance with the market leaders. On the other
hand, the capital structure of the organization is considered to be adequate as the debt
composition is relatively low in comparison to equity composition. Moreover, adequate
calculations regarding the capital structure and profitability of JB Hi-Fi discussed in the
assessment, which helps in analyzing and elaborating with the performance of the company is
deteriorating or appreciating over the period of time.

2FINANCE PORTFOLIO MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Part A: Written Report.....................................................................................................................3
a) Analyzing and elaborating whether the company in improving or deteriorating in terms of
capital structure and profitability ratios:..........................................................................................3
b) Indicating how the company is comparing with the industry average:.......................................6
c) Stating whether there is a relationship between the capital structure and profitability ratios:....8
d) Calculating the Cash Conversion Cycle (CCC) of the company and detect its performance
over the period of 5 years:...............................................................................................................8
e. Determining the price of the bond before and after the rumor, while calculating the value of
ordinary share:...............................................................................................................................10
Conclusion:....................................................................................................................................11
References and Bibliography:........................................................................................................12

3FINANCE PORTFOLIO MANAGEMENT
Introduction:
The overall assessment aims in evaluating the performance and financial structure of JB
Hi-Fi for the five financial years. Moreover, adequate calculations regarding the capital structure
and profitability of JB Hi-Fi discussed in the assessment, which helps in analyzing and
elaborating with the performance of the company is deteriorating or appreciating over the period
of time. Additionally, the financial ratios JB Hi-Fi compared with industry average to determine
whether the organizations current operation condition is in accordance with the market leaders.
Furthermore relationship between capital structure and profitability ratios is discussed to
determine whether they are interlinked with each other. In addition, calculation has been
conducted for the past 5 years on the cash conversion cycle of JB Hi-Fi to detect the cash
availability for the organization. The calculation of adequate corporate bonds and ordinary shares
are also conducted. Lastly, a reflective analysis is conducted on the article for reflecting on
relevant goals.
Part A: Written Report
a) Analyzing and elaborating whether the company in improving or deteriorating in terms
of capital structure and profitability ratios:
In million 2018 2017 2016 2015 2014
Revenue 6854.3 5628 3954.5 3625.1 3483.8
Gross profit 1470.2 1230.5
865.40
8 798.253 755.981
net profit 233.2 172.4
152.18
1 136.511 128.447
total assets 2491.7 2459.8 992.38 895.013 859.841