University Finance Report: Financial Analysis of JB Hi-Fi Limited

This report presents a financial analysis of JB Hi-Fi Limited, evaluating various internal and external factors. It details the company's revenue generation, highlighting the 3% increase in overall revenue driven by sales from new stores and product categories. The report classifies JB Hi-Fi's assets into categories like current, fixed, tangible, and intangible assets. It also examines the major categories within the group's equity, including contributed equity, reserves, and retained earnings. Furthermore, the analysis covers current liabilities for dividend payments to ordinary shareholders and compares JB Hi-Fi's dividend per share with the group's earnings per share, providing insights into the company's financial performance. The report references several sources to support its analysis and conclusions.

RUNNING HEAD: Financial analysis of company 1
Student Name-
Title- Financial analysis
University Name-

Financial analysis 2
Table of Contents
Different part of revenue generated by consolidated group of JB Hi-Fi Company......................................4
Classification of group assets..................................................................................................................4
Major categories listed among the group’s equity..................................................................................4
Current liabilities for dividend to ordinary shareholders.........................................................................5
Comparing dividend per share of JB Hi-Fi limited with the group’s earnings per share..........................6
References...................................................................................................................................................7

Financial analysis 3
Organizations are complex set of activities in which various functions are performed.
This report reflects the financial analysis of JB Hi-Fi limited and evaluates all the internal and
external factors of company. In this report, various sections or parts of JB Hi-Fi has been
described.

Financial analysis 4
Different part of revenue generated by consolidated group of JB Hi-Fi
Company
With the increasing ramification of economic changes and complexity of business
factors, JB Hi-Fi limited has increased its overall revenue by 3% as compared to last years. Total
revenue of JB Hi-Fi limited is accompanied by sales of new stores, television, cameras and
musical stores. The main revenue of company is generated by providing services to external
customers (Alander,et al, 2013).
.
Classification of group assets
There are various rules and regulations are implemented and applied to each asset groups
within the classification system of organization. There are several groups in which classification
of assets of JB Hi-Fi limited is made such as current assets, fixed assets, tangible assets,
intangible assets and other assets. This classification of groups of assets could be done by
evaluating the annual report of company (Horngren, et al. 2012).
Major categories listed among the group’s equity
It is observed that JB Hi-Fi limited has several parts in its group equity which are given
as below

Financial analysis 5
Contributed equity- It is the part of the capital or investment owned by company. This
contributed capital of JB Hi-Fi limited is AUD $ 438.7 million which has increased from AUD
$49 million to AUD $ 438.7 million since last one year.
Reserve- It is the amount of profit earned by company in current and previous year and
not distributed to shareholders yet. This amount could be used by company to plug back in
business for expansion and business enhancement purpose. JB Hi-Fi limited has AUD $ 33.2
million reserve (Horngren, et al, 2012).
Retained earning- This distributable profit which are retained and not distributed to
investors. JB Hi-Fi limited has 381.6 retained earnings and could be used by company at very
loss cost of capital.
JB Hi-Fi limited has more than 1.4 million shareholder at the end of financial year in its
business functioning.
Current liabilities for dividend to ordinary shareholders
JB Hi-Fi limited has several current liabilities in its balance sheet. However, current
liabilities to pay off divided to equity shareholders is related to payment of AUD $ 119.1 million
to ordinary shareholders. This is the amount of dividend declared to shareholders which should
be paid by the company within 30 days.

Financial analysis 6
If I were to own 100 ordinary shares in JB Hi-Fi limited then I would be having AUD $
1.39 * 100= AUD 139.1.
Comparing dividend per share of JB Hi-Fi limited with the group’s earnings
per share
It is evaluated that in order to compare the dividend per share of JB Hi-Fi limited with
group’s earnings per share, investors needs to take similar industry company. After that dividend
yield of company could be computed with the help of EPS and Market price of shares in market
(Horngren, et al. 2012).

Financial analysis 7
References
Alander, J., Bochko, V., Martinkauppi, J. B., Välisuo, P., & Söderbacka, C. (2013). Optical
sensoring of internal hollow heart related defects of potatoes** We thank Sapuska
program of Tekes (the Finnish Funding Agency for Technology and Innovation) for
financial support. IFAC Proceedings Volumes, 46(18), 24-28.
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage
Learning.
Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seeding
entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer
innovations. Entrepreneurship Theory and Practice, 39(1), 9-26.
Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D., & Tan, R. (2012). Financial
accounting. Pearson Higher Education AU.

Financial analysis 8

Financial analysis 9