Accounting and Financial Reporting: JB Hi-Fi Sales Revenue Analysis

This project report analyzes the financial performance of JB Hi-Fi, focusing on sales revenue, cost of goods sold (COGS), and net profit from 2016 to 2017. The analysis reveals a significant increase in sales revenue, rising from $3954 million in 2016 to $5628 million in 2017, indicating positive growth. The report also examines the COGS, which increased from $3089 million to $4398 million during the same period, and the net profit, which grew from $152 million to $172 million. The study suggests that while diversification has enhanced revenue, it has also impacted expenses, COGS, and net profit. The report concludes with recommendations for the company to manage expenses and capitalize on revenue-enhancing strategies, emphasizing the importance of financial policies for continued market growth. The analysis is supported by data from the company's annual reports and references academic sources to provide a comprehensive financial overview.

Running Head: Accounting & Financial reporting
1
Project Report: Accounting & Financial reporting

Accounting & Financial reporting 2
Sales Revenue:
For evaluating the sales revenue of JB HI FI, annual report of the company has been
analyzed and it has been found that the sales revenue of the company was $ 3954 million in
2016 and it has been enhanced to $ 5628 million n 2017. It express about a great increment in
the total revenues of the company.
Financial Data
Description
JB Hi-FI Limited
($M)
2017 2016
Revenue 5628 3954
(Morningstar, 2018)
Following graph express about the changes in the total revenue of the company in last
2 years:
Further, the Cost of good sold of the company has been evaluated and it has been
found that the change % in the COGS of the company is quite lower yhan the chnages in total
sales of the company. COGS of the company is $ 4398 million and $ 3089 million in 2017
and 2016 repsectily. Following ts the COGS position of the company:
Financial Data
Description
JB Hi-FI Limited
($M)
2017 2016
Cost of goods sold 4398 3089

Accounting & Financial reporting 3
More to it, the net profit of the company has been evaluated and it has been found that
the % change in the net profit of the company is quite different than the total chnages in total
sales and total cost of goods sold of the company (Annual Report, 2017). Net profit of the
company is $ 172 million and $ 152 million in 2017 and 2016 repsectily. Following ts the net
profit position of the company:
Financial Data
Description
JB Hi-FI Limited
($M)
2017 2016
Net profit 172 152

Accounting & Financial reporting 4
The above study explains about the rapid changes in the organization. It expresses that
the sales revenues of the company has been changed a lot in last 2 years. The policies and the
strategies of the company explain about the reasons behind these changes. Through the
annual report of the company, it has been found that the diversification have helped the
company to enhance the revenues but due to diversification, the expenses of the company has
been enhanced and it have directly impacted over the cost of goods sold and the net profit of
the company (Brigham and Ehrhardt, 2013).
Further, it has been found through the study over the sales graph and the new
strategies of the company that the policies should be followed by the company so far, it
would enhance the revenue of the company more and at the same time, company should
focus on the total expenses of the company. The expenses express that the company must
make new policies to make control on the total expenses of the company (Garrett, Hoitash
and Prawitt, 2014). To conclude, JB HI FI is an Australian company and it has managed all
its operations and the activities in a great manner to manage the performance and the position
of the company in the market. Further, it also expresses that few new policies about the
revenues and the expenses of the company would help the organization to grow more in the
market.

Accounting & Financial reporting 5
References:
Annual report. 2017, JB HI-FI. Retrieved on 19th Jan, 2018 from
http://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_JBH_2016.pdf
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory and practice.
Cengage Learning.
Garrett, J., Hoitash, R. and Prawitt, D.F., 2014. Trust and financial reporting
quality. Journal of Accounting Research, 52(5), pp.1087-1125.
Morningstar. 2018, JB HI-FI. Retrieved on 19th Jan, 2018 from
http://financials.morningstar.com/income-statement/is.html?t=JBH