Preview

Jb Hi-Fi Report

Good Essays
Open Document
Open Document
3990 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jb Hi-Fi Report
Executive Summary

The purpose of this report is to evaluate the findings of an analysis conducted on JB Hi-Fi (JBH). This evaluation will be assessed to present a recommendation to acquire shares to add to an investment portfolio. This report will assess JBH relative to profitability, asset efficiency, liquidity, capital structure a

BSBFIA402A REPORT ON FINANICIAL ACTIVITY DANIELO FRUSCIANTE

BUSINESS REPORT
JB Hi-Fi (JBH) Company Profile

Sector: Services
Industry: Specialty Retail, Other
Public Company: Share holders

A public ltd company sells theirs shares through the stock exchange.Companies can have a full quotation put on the stock exchange so their share prices appear on the dealers screens.The main advantage of selling shares on the stock exchange is that large amounts of capital can be raised very quickly.
A disadvantage is that a business can be taken over if a large amount of shares are bought in a take over bid. It also cost alot to have shares quoted on the stock exchange.

JB Hi-Fi Limited (JBH) is a specialty discount retailer of branded home entertainment products. The Group 's products fall in into consumer electronics, car sound systems, music, DVDs and white goods. JBH does not operate a warehouse; instead all stock is delivered directly to each retail outlet and largely stored on the shop floor.
JBH uses its size and mix of high growth categories to increase its buying and advertising synergies. They are focused on growth, opening 39 stores in the past 2 years and a securing another 18 sites set to open in the 2009/2010 financial year. As of the 30th of June 2009, the company had 123 stores operating around Australia and New Zealand. (106 branded JB Hi-Fi)

JBH delivered another record result in 2009 with sales up 27.3%on the prior year, EBIT growth of 39% and NPAT growth of 45% at year-end. This was achieved through a combination of strong comparative store sales growth and a



References: (2008) JBH Annual Report (2009) JBH Annual Report (Austock Equities Research – December Quarter 2009) Stocks to watch, May 10, 2010, http://www.watoday.com.au/business/markets/stocks-to-watch-20100510-um2x.html Symons, D. (April 13, 2010) Fading fiscal stimulus could put JB out of tune. http://www.watoday.com.au/business/fading-fiscal-stimulus-could-put-jb-out-of-tune-20100412-s43g.html Thomson, J (09 February 2010) The 10 strategy secrets of JB Hi-Fi, http://www.smartcompany.com.au/retail/20100209-the-10-strategy-secrets-of-jb-hi-fi-chief-richard-uechtritz-here-s-what-you-can-learn.html Bibliography Gitman, Juchau & Flanagan, Principles of Managerial Finance,5th edition, 2008, Australia Birt, Chalmers, Beal, Brooks, Byrne & Oliver, Accounting Business Reporting for Decision Making 2nd edition, 2008, Australia.

You May Also Find These Documents Helpful

  • Powerful Essays

    Hhgregg Investing Report

    • 4296 Words
    • 18 Pages

    There has been a steady increase in net sales and net profit from hhgregg, as depicted on their income statement. By looking at their balance sheet, it is clear that hhgregg is expanding their company since their total assets have improved year after year. The comparative stock price of hhgregg has also increased dramatically since 2007 compared to the S&P 500 average even through the recession. After looking at two important financial ratios, the price-to-earnings and return on equity ratios, I determined that hhgregg is in a sound financial position because their ratios are above the industry average.…

    • 4296 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    Tootsie Roll

    • 1147 Words
    • 5 Pages

    Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Accounting: Tools for business decision making. Hoboken: John Wiley & Sons, Inc.…

    • 1147 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.…

    • 2127 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2009). Accounting: Tools for business decision making (3rd ed.). Hoboken, NJ: John Wiley & Sons.…

    • 723 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Acc300

    • 1417 Words
    • 6 Pages

    Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.…

    • 1417 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Fast Fit Case

    • 2269 Words
    • 10 Pages

    9. HQ tells suppliers which goods are going to be re-ordered. Also HQ pays for the goods that the supplier has supplied.…

    • 2269 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    The well-known retailer has grown to nearly 1,100 stores and boasts a workforce of more than 116,000 full and part-time employees (Strand, 1998). JCP operates in the continental United States, Alaska, and Puerto Rico. Loyal consumers flocked to the giant big box store where it sold women, men, and children 's clothing along with jewelry and household items such as appliances and home furniture. Over the years, the giant retailer has polished its marketing finesse. JCP 's current catchy advertising line: "Creating America 's Favorite Store" (JCP, n.d.).…

    • 2816 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2011). Accounting: Tools for business decision making (4th ed.). NJ: John Wiley & Sons…

    • 867 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    After a thorough investigation into the JJJ Company the ad hoc committee has compiled their findings. As our CEO I know that you are anxious to move forward with the acquisition, however you have made it clear that you will only move forward if the purchase will yield greater profit and bigger dividends. After reviewing all of the findings the committee and I have decided to recommend that we do not move forward with the acquisition.…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Intel vs Arm Case

    • 1216 Words
    • 5 Pages

    Value Added to Company. The proposed acquisition will provide JBT with a solution for its declining operating profits (from 10.7% to 7.8% YOY). A main cause for this was an unfavorable mix of aftermarket products sold compared to the prior year. By introducing a high-quality, high-margin product (50%) to their product mix; JBT should see increases in their operating profits, which will positively impact their bottom line. In addition, profits from servicing the equipment will provide an additional consistent and profitable revenue stream over the life of the product.…

    • 1216 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Summary: JB Hi-Fi

    • 54 Words
    • 1 Page

    With the development of the world economy, the trend of businesses that is divided into alternative method to operate the company. In this report, the CEO of JB Hi-Fi would be recommended by the analysis of market trend. Also, the pros and cons of the business that selling online and in the physical…

    • 54 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Jb Hi Fi Case Study Essay

    • 2300 Words
    • 10 Pages

    JB HI FI was founded in 1974 and consisted of one sole store in the suburbs of Melbourne, Victoria. Since this time JB HI FI has grown somewhat substantially, the company has spread its HI FI retail stores across the country and reportedly generated $2.8 billion in revenue in 2009 (Collins 2010). When observing the past 15 years of JB HI FI’s life, two significant organisational changes standout. The first of which is in July 2000 when the company was acquired by Macquarie bank and BancBoston in a deal estimated to be worth around $40 million (Dabkowski 2000). The second substantial change was the company becoming public in September 2005.…

    • 2300 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Dilution of Powers – Due to the nature of Public Limited Companies, sometimes disputes will arise between Directors and Shareholders as their ideas of what is best for the company vary. Sale of shares to increase company funds will further dilute the management, as more and more people have a say in how the company is run. There is also a risk (since Companies can buy shares) that a takeover might occur this way.…

    • 350 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    firms

    • 1864 Words
    • 8 Pages

    Kimmel, Weygandt and Kieso, 4th Edition Accounting, Tools for Business Decision Making, John Wiley & Sons, Inc.…

    • 1864 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    JC Penny case

    • 461 Words
    • 2 Pages

    provided them with an abundance of sales and promotions. Today, JCP has further expanded its…

    • 461 Words
    • 2 Pages
    Good Essays