Financial Analysis of JB Hi-Fi Limited
Added on 2020-06-04
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Managing FinancialResearch
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Overview of company............................................................................................................3Scope of analysis ...................................................................................................................4Key financial issues faced by an organization.......................................................................4Factors associated with JB HI FI Limited..............................................................................4Assessing financial viability:..................................................................................................6Impacts of finance on financial statements............................................................................7Ratio Analysis: ......................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11APPENDIX:...................................................................................................................................12
INTRODUCTIONFinance is an essential parts of every business organization. Without having adequateamount of funds organisation cannot survive for longer period of time. The primary objective foran organisation is to maximise wealth for the company. In order to determine its current position,manager needs to analyse its financial status so that present value can be examine. The timevalue of money and risk associated with the projects are identify before making any plan forinvestments. Some specific aspects that are examine under this reports are assets, equity as wellas payment of dividend that are incurred by company during the year. This report covers variousaspects that are helpful in decision-making and evaluation by using certain ratios. On the basis ofproper evaluation over certain impacts that are available in internal departments of anorganisation are discuss under this report (Broadbent and Cullen, 2012).TASK 1Overview of companyJB Hi Fi Limited is an Australian retailer company which is dealing in consumerproducts. They are mainly specialised in video game, Blu-rays, DVDs and CDs or otherelectronic home appliances. It is situated in Chadstone shopping centre in Melbourne. It is apublic listed company that deals in retail sectors. There are almost 112 stores at various locationin Australia. The total revenue generate by company is about A$4billion. JB Hi Fi has verydiversify business and is currently deals in retailer for consumer electronic that consists ofplasma and LCD televisions (Renz and Herman, 2016). In fast moving business world people are more reliable on latest and fast technologiesthat can help to solve business problems by just one click. The primary target of the company isto make expansion of their core operation with the help of their available profits. This JB HI FIcompany is listed over Australian stock exchange. There are continuous increasing in itsprofitability by 26% as compare to last year. It has been seen that JB Hi Fi is a sole retail chain inAustralia that sells various electronic products in their shops. It has been observed that thiscompany is one of the largest retailer and second in term of selling computer games and carstereos. JB HI FI company are offering products at very economical prices to customer so thatevery one can avail product and services of company in more effective manner.3
Scope of analysis The primary aim of this particular analysis is to examine key aspects that are associatedwith JB Hi Fi company. The financial performance and position can be evaluated by usinginformation from various statements such as profit and loss, balance sheet and cash-flowsstatements.Key financial issues faced by an organizationIt is mainly depend upon the size of business various other factors can have impacts onan organisation. Because of their inability to enjoy different benefits in the marketplace. Equityrelated business is designed and operate with the motive of providing a value that can access bythe owners in coming times. Financial risks are develop from an organisation's exposure tomodify in market prices such as rate of interest, product cost and exchange rates. Financialproblem is a kind of situations where money related concern are creating more stress for thecompany's owner. Most people would face hard time and has direct impacts on financial positionduring the year. These issues can be impossible to deal with but owners could get assistance byusing various steps in solving those in some critical situations (Cascio, 2018). There are certain more aspects that are related with the company such as transaction withother company or parties. Some of them can be arises from internal actions of failure of organisation policies andfinancial systems. In case of change in market policies as well as structure of company's format thesefinancial issues can be originated. The performances of staffs and other employee can be more effectively analyse by usingappropriate techniques that help them to resolve various financial issues. The major impacts are shown over the productivity of the company as they are incurringmaximum investments in formulation of product selling plans. Some of the issues arerelated with the savings and credit banks (Cases and et. al., 2011). Factors associated with JB HI FI LimitedOrganisation structure is a crucial framework for a company that is to present in front ofauthority those are running their businesses. There are various policies, rules and responsibilitiesthat can have huge impacts on the financial growth of the company. These factors can be arisesfrom both internal as well as external level. Business owners needs to consult or make review of4
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