Financial Statement Analysis of JB Hi-Fi Limited

Running head: FINANCIAL STATEMENT ANALYSIS OF JB HIFI LIMITED
Financial Statement Analysis of JB Hi-Fi Limited
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1FINANCIAL STATEMENT ANALYSIS OF JB HI-FI LIMITED
Executive Summary:
This report contains detailed analysis of financial statement of JB Hi-Fi Limited. JB Hi-Fi is a
large Australian consumer goods retailer operating through numerous retail outlets and through
online platform. They have been performing well since its imitation and as compared to their
competitors. In this report, their financial and operational performance of JB Hi-Fi Limited is
analysed based on the information available in their 2014 annual report. Lastly, the paper
concludes with outlining some key success factors for their financial and operational
Excellencies.

2FINANCIAL STATEMENT ANALYSIS OF JB HI-FI LIMITED
Table of Contents
Introduction:....................................................................................................................................4
Part A:..............................................................................................................................................4
1. Financial performance and financial position parameters based on 2014 Annual report of JB
Hi-Fi:............................................................................................................................................4
2. Normal balance of above accounts and effects for decrease in balance:.................................5
Part B:..............................................................................................................................................7
1. Different types of revenues generated by consolidated group of JB Hi-Fi:............................7
2. Assets classification of JB Hi-Fi:............................................................................................7
3. Categories of JB Hi-Fi group’s equity and number of ordinary shares:..................................8
4. Current Liability for dividends and dividend calculations:.....................................................8
5. Comparison of dividend per share with earnings per share:....................................................9
Part C:............................................................................................................................................10
Requirement 1:...........................................................................................................................10
Requirement 2:...........................................................................................................................11
Conclusion:....................................................................................................................................11
Bibliography:.................................................................................................................................12

3FINANCIAL STATEMENT ANALYSIS OF JB HI-FI LIMITED
Introduction:
Financial statement analysis is a tool to analyse the financial and operational performance
of an organisation based on the figures available in the annual report1. JB Hi-Fi Limited’s
financial performance and financial position can be analysed classifying the information in
various groups. To achieve that purpose, their financial parameters have been pointed and
interpreted meaningfully to understand their financial strengths and weaknesses.
Part A:
1. Financial performance and financial position parameters based on 2014 Annual report
of JB Hi-Fi:
Financial Performance and
Financial position parameters
Figures from
Annual report 2014 Brief Interpretation
Cash and cash equivalents $43,445,000
Cash and cash equivalent includes liquid
cash and any other short-term securities or
financial instruments which can easily be
converted into cash. It helps in maintaining
daily business activities and paying off short
term financial obligations.
Inventories $458,625,000
The total consolidated value of inventories
includes all the finished goods inventories
and semi finish goods inventories. They
value their closing inventory based on lower
of cost or market value whichever is lower.
Sales Revenue $3,483,755,000
Total sales revenue includes all the sales of
their subsidiaries. It is the main source of
earning of JB Hi-Fi.
Other Income $520,000 Other income of JB Hi-Fi includes interest
income and many other hedging gains. They
have presented it separately in their income
1 Easton, McAnally, and Zhang Sommers. "Financial Statement Analysis & Valuation, 5e." (2018).