This report evaluates the financial and non-financial aspects of JB Hi-Fi Limited, a leading retail company in Australia. It includes analysis of financial ratios, industry performance, and organizational structure to indicate growth prospects of the company.
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Wealth Report
Resource A: Financial Analysis Report ContentTable of ContentsExecutive Summary...................................................................................................................1Analysis......................................................................................................................................1Interpretation..............................................................................................................................3References..................................................................................................................................4
Executive SummaryBackground of the companyThe company that has been chosen for analysis is JB Hi-Fi Limited. This company deals in retail business of electronic consumer goods. The company is based in Australia with its stocks trading in Australian Exchange. It is one of the leading companies of Australia in retailbusiness.Purpose of the reportThis report will help evaluate the company for a prospective shareholder in terms of its financial and non-financial aspects. The annual report and other important documents of the company would be studied in detail to understand the current financial position of the company. Also aspects like its competitive advantage, industry performance, and organizational structure will indicate about the growth prospects of the company.AnalysisFinancial aspectBased on the study of the financial report of JB Hi-Fi Limited over the past few years, we cansee the following:Short term solvency ratioRatiosFormula20172016Current ratioCurrent assets / Current liabilities1.321.57Quick ratioCurrent assets- inventory / Current liabilities0.350.345The comparison of the quick ratio and the current ratio from that of the previous year indicatethat there has not much change in these ratios. However the current ratio has decreased slightly as the current liabilities of the company for 2017 has increased.Efficiency RatioInventory Turnover COGS/ Inventory5.115.65
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