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Jb Hi Fi Company is founded by John Barbuto. It is a type of retail industry founded 45 years ago in 1974 at Keilor East, Victoria, Australia. This company mainly deals in the products related to customer electronics, major appliances such as domestic appliance for cooking and washing laundry, for food preservation etc and example of small appliances can be said as microwave oven, coffee makers etc. JB Hi Fi is the largest company of home appliances in Australia. It deals in Computers, tablets, mobile phones, TVs and gaming multimedia. The Good Guys is the subsidiary of this company. JB HI FI is located nearly at 303 places including Australia and New Zealand. The headquarters of JB Hi Fi Company is in Tower Two of Vicinity Centre’s Chadstone Shopping Centre, Melbourne, Australia. Gregory Richards being a Chairman of the company and Richard Murray as the CEO forms the two key people of Jb Hi Fi. This company is publically traded in the Australian stock exchange named ASX: JBH. The company ranks 50 out of top 2000 companies running in Australia. All the other relevant information about the company can be referred through the official website of Jb Hi Fi Company https://www.jbhifi.com.au/.
Here we are going to know all about the success policies of JB HI FI. Its financial performance and income statements of the company. Jb Hi Fi is an Australian company, aw we know, one of the largest entertainment retailer of home products. The company deals with major appliances as well as small appliances in a variety of home appliances. Mobile phones, laptops, televisions, gaming microwave ovens, toaster JB Hi Fi are all examples of the company’s flagship and small appliances.
In this assignment, we will go over all the important and salient issues faced by the company in general, their adopted principles, the overall performance measures used, and the performance of the firm’s financial position of JB HI FI Company. We will also analyse the structure of capital, their price to income ratio, non-assets of the company JB hi fi. These performances will set the standards for future targets for the company, will they be able to meet their goals and achieve success in the near future?
We will analyse the changing trends about the Jb Hi Fi Australian Company for the last three year financial ratios of the company. An in-depth study of the company’s performance analysis and success report will be seen. The company’s philosophy and system of work will predict the future. Jb Hi Fi as stated above in this assignment is the real and comparable figures according to the official website of the Australian company. We can get all the necessary information about the company from the company annual report. The referenced material has been updated in the year 2019.
Here we are also going to know the details about the liquidity position of Jb Hi Fi Australian Company. The prices of the shares are updated and regularly assured from the official website of JB HI FI COMPANY https://www.jbhifi.com.au.
JB Hi Fi Company in Australia deals in household or domestic products, major appliances as well as small appliances. Major appliances such as TVs, laptops are bigger in size and higher in value as compared to small appliances such as coffees machine and microwave oven (Tandon & Malhotra, 2013). The importance of the petroleum products in maintaining the comparative advantages of the company are listed below –
Variable rewards incentives – the reward incentive under the VRP in the case of dishonesty and fraud, the board’s discretion will happen by the clawback. Misstatement of material, breach of material and in some circumstances the board shows negligence (Talari, et. al., 2017). Subject to this, a Group executive will not be eligible to receive VRPaward in respect of performance period.
Note – If, during that period, the executive cease to employed, or has given notice of his or her resignation from employment or has been given notice of termination from employment.
| BALANCE SHEET RATIOS | ||||||||
| S. No, | Particulars | 2016-17 | 2017-18 | 2018-19 | ||||
| 1 | Current | |||||||
| Current Assets | $ 1,170.70 | 1.321630165 | $ 1,210.50 | 1.319777584 | $ 1,276.50 | 1.376874124 | ||
| Current Liabilities | $ 885.80 | $ 917.20 | $ 927.10 | |||||
| 2 | Quick | |||||||
| Cash + Accts. Rec. | $ 269.40 | 0.304131858 | $ 276.70 | 0.301679023 | $ 355.20 | 0.383130191 | ||
| Current Liabilities | $ 885.80 | $ 917.20 | $ 927.10 | |||||
| 3 | Debt-to-Worth | |||||||
| Total Liabilities | $ 1,598.80 | 0.651959385 | $ 947.60 | 0.5 | $ 1,044.10 | 0.5 | ||
| 0 | Net Worth | $ 2,452.30 | $ 1,895.20 | $ 2,088.20 | ||||
| INCOME STATEMENT RATIOS: Profitability (Earning Power) | ||||||||
| 4 | Gross Margin | |||||||
| Gross Profit | $ 1,230.50 | 0.218638948 | $ 1,470.10 | 0.214478503 | $ 1,527.10 | 0.215226981 | ||
| Sales | $ 5,628.00 | $ 6,854.30 | $ 7,095.30 | |||||
| 5 | Net Margin | |||||||
| Net Profit Before Tax | $ 172.40 | 0.030632552 | $ 233.20 | 0.034022438 | $ 249.80 | 0.035206404 | ||
| Sales | $ 5,628.00 | $ 6,854.30 | $ 7,095.30 | |||||
| ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios | ||||||||
| 6 | Sales-to-Assets | |||||||
| Sales | $ 5,628.00 | 2.294988378 | $ 6,854.30 | 2.723743294 | $ 7,095.30 | 2.836871776 | ||
| Total Assets | $ 2,452.30 | $ 2,516.50 | $ 2,501.10 | |||||
| 7 | Return on Assets | |||||||
| Net Profit Before Tax | $ 259.20 | 0.105696693 | $ 334.50 | 0.13292271 | $ 358.90 | 0.143496861 | ||
| Total Assets | $ 2,452.30 | $ 2,516.50 | $ 2,501.10 | |||||
| 8 | Return on Investment | |||||||
| Net Profit Before Tax | $ 259.20 | 0.105696693 | $ 334.50 | 0.176498523 | $ 358.90 | 0.17187051 | ||
| Net Worth | $ 2,452.30 | $ 1,895.20 | $ 2,088.20 | |||||
| ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios | ||||||||
| 9 | Inventory Turnover | |||||||
| Cost of Goods Sold | $ (4,397.50) | -5.11396674 | $ (5,384.10) | -6.042082819 | $ (5,568.20) | -6.27968873 | ||
| Inventory | $ 859.90 | $ 891.10 | $ 886.70 | |||||
| 10 | Inventory Turn-Days | |||||||
| 360 | 360 | 0.418653332 | 360 | 0.403995062 | 360 | 0.405999774 | ||
| Inventory Turnover | $ 859.90 | $ 891.10 | $ 886.70 | |||||
| 11 | Accounts Receivable Turnover | |||||||
| Sales | $ 5,628.00 | 28.6266531 | $ 6,854.30 | 33.48461163 | $ 7,095.30 | 30.06483051 | ||
| Accounts Receivable | $ 196.60 | $ 204.70 | $ 236.00 | |||||
Trends:
| Carrying Amount end of the year | 2016-17 | 2017-18 | 2018-19 |
| Plant & Equipment | 148.2 | 148.2 | 132.3 |
| Leasehold Improvements | 60 | 60 | 59.2 |
| Depreciation | 2016-17 | 2017-18 | 2018-19 |
| Plant & Equipment | 138.5 | 162.4 | 196.3 |
| Leasehold Improvements | 97.3 | 113.9 | 130.2 |
| Carrying Amount beg. of the year | 2016-17 | 2017-18 | 2018-19 |
| Plant & Equipment | 114.8 | 148.2 | 148.2 |
| Leasehold Improvements | 61.4 | 60 | 60 |
The fixed assets are consisting of the plant & equipment.
The life of the estimates is as follows:
Leasehold Property: 1 to 15 years
Plant and Equipment: 1.5 to 15 years
The impairment will be done as per the change in circumstances.
| Average selling price | $ 25.00 | |||||||||
| Expected sale | 450000 | |||||||||
| equipment cost | $ 2,500,000.00 | |||||||||
| Residual Value | $ 500,000.00 | |||||||||
| Working Capital | $ 800,000.00 | |||||||||
| Depreciation | SLM | |||||||||
| Variable cost | $ 15.00 | |||||||||
| Fixed cost | $ 450,000.00 | |||||||||
| Discount rate | 12% | |||||||||
| Tax Rate | 30% | |||||||||
| Year | 1year | 2 year | 3 year | 4 year | ||||||
| Sales | 11250000 | 11250000 | 11250000 | 11250000 | ||||||
| Variable cost | 6750000 | 6750000 | 6750000 | 6750000 | ||||||
| Contribution | 4500000 | 4500000 | 4500000 | 4500000 | ||||||
| Fixed cost | 450000 | 450000 | 450000 | 450000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Operating Profit | 3550000 | 3550000 | 3550000 | 3550000 | ||||||
| Tax | 1065000 | 1065000 | 1065000 | 1065000 | ||||||
| PAT | 2485000 | 2485000 | 2485000 | 2485000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Working Capital | 800000 | |||||||||
| Residual Value | 500000 | |||||||||
| Free Cash Flows | 2985000 | 2985000 | 2985000 | 4285000 | ||||||
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | ||||||
| Discounted Inflows | 2665178.571 | 2379624 | 2124664 | 2723195 | ||||||
| Outflow | $ 3,300,000.00 | |||||||||
| Inflow | 9892661.302 | |||||||||
| NRV | $ 6,592,661.30 | |||||||||
| Average selling price | $ 20.00 | |||||||||
| Expected sale | 450000 | |||||||||
| equipment cost | $ 2,500,000.00 | |||||||||
| Residual Value | $ 500,000.00 | |||||||||
| Working Capital | $ 800,000.00 | |||||||||
| Depreciation | SLM | |||||||||
| Variable cost | $ 15.00 | |||||||||
| Fixed cost | $ 450,000.00 | |||||||||
| Discount rate | 12% | |||||||||
| Tax Rate | 30% | |||||||||
| Year | 1year | 2 year | 3 year | 4 year | ||||||
| Sales | 9000000 | 9000000 | 9000000 | 9000000 | ||||||
| Variable cost | 6750000 | 6750000 | 6750000 | 6750000 | ||||||
| Contribution | 2250000 | 2250000 | 2250000 | 2250000 | ||||||
| Fixed cost | 450000 | 450000 | 450000 | 450000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Operating Profit | 1300000 | 1300000 | 1300000 | 1300000 | ||||||
| Tax | 390000 | 390000 | 390000 | 390000 | ||||||
| PAT | 910000 | 910000 | 910000 | 910000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Working Capital | 800000 | |||||||||
| Residual Value | 500000 | |||||||||
| Free Cash Flows | 1410000 | 1410000 | 1410000 | 2710000 | ||||||
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | ||||||
| Discounted Inflows | 1258928.571 | 1124043.367 | 1003610.149 | 1722254 | ||||||
| Outflow | $ 3,300,000.00 | |||||||||
| Inflow | 5108836.081 | |||||||||
| NRV | $ 1,808,836.08 | |||||||||
| Average selling price | $ 25.00 | |||||||||
| Expected sale | 360000 | |||||||||
| equipment cost | $ 2,500,000.00 | |||||||||
| Residual Value | $ 500,000.00 | |||||||||
| Working Capital | $ 800,000.00 | |||||||||
| Depreciation | SLM | |||||||||
| Variable cost | $ 15.00 | |||||||||
| Fixed cost | $ 450,000.00 | |||||||||
| Discount rate | 12% | |||||||||
| Tax Rate | 30% | |||||||||
| Year | 1year | 2 year | 3 year | 4 year | ||||||
| Sales | 9000000 | 9000000 | 9000000 | 9000000 | ||||||
| Variable cost | 5400000 | 5400000 | 5400000 | 5400000 | ||||||
| Contribution | 3600000 | 3600000 | 3600000 | 3600000 | ||||||
| Fixed cost | 360000 | 360000 | 360000 | 360000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Operating Profit | 2740000 | 2740000 | 2740000 | 2740000 | ||||||
| Tax | 822000 | 822000 | 822000 | 822000 | ||||||
| PAT | 1918000 | 1918000 | 1918000 | 1918000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Working Capital | 800000 | |||||||||
| Residual Value | 500000 | |||||||||
| Free Cash Flows | 2418000 | 2418000 | 2418000 | 3718000 | ||||||
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | ||||||
| Discounted Inflows | 2158928.571 | 1927614.796 | 1721084.639 | 2362856 | ||||||
| Outflow | $ 3,300,000.00 | |||||||||
| Inflow | 8170484.222 | |||||||||
| NRV | $ 4,870,484.22 | |||||||||
| Average selling price | $ 25.00 | |||||||||
| Expected sale | 450000 | |||||||||
| equipment cost | $ 2,500,000.00 | |||||||||
| Residual Value | $ 500,000.00 | |||||||||
| Working Capital | $ 800,000.00 | |||||||||
| Depreciation | SLM | |||||||||
| Variable cost | $ 29.80 | |||||||||
| Fixed cost | $ 450,000.00 | |||||||||
| Discount rate | 12% | |||||||||
| Tax Rate | 30% | |||||||||
| Year | 1year | 2 year | 3 year | 4 year | ||||||
| Sales | 11250000 | 11250000 | 11250000 | 11250000 | ||||||
| Variable cost | 13410000 | 13410000 | 13410000 | 13410000 | ||||||
| Contribution | -2160000 | -2160000 | -2160000 | -2160000 | ||||||
| Fixed cost | 450000 | 450000 | 450000 | 450000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Operating Profit | -3110000 | -3110000 | -3110000 | -3110000 | ||||||
| Tax | -933000 | -933000 | -933000 | -933000 | ||||||
| PAT | -2177000 | -2177000 | -2177000 | -2177000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Working Capital | 800000 | |||||||||
| Residual Value | 500000 | |||||||||
| Free Cash Flows | -1677000 | -1677000 | -1677000 | -377000 | ||||||
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | ||||||
| Discounted Inflows | -1497321.429 | -1336894.133 | -1193655.476 | -239590 | ||||||
| Outflow | $ 3,300,000.00 | |||||||||
| Inflow | -4267461.352 | |||||||||
| NRV | $ (7,567,461.35) | |||||||||
| Worst Case | ||||||||||
| Average selling price | $ 25.00 | |||||||||
| Expected sale | 450000 | |||||||||
| equipment cost | $ 2,500,000.00 | |||||||||
| Residual Value | $ 500,000.00 | |||||||||
| Working Capital | $ 800,000.00 | |||||||||
| Depreciation | SLM | |||||||||
| Variable cost | $ 15.00 | |||||||||
| Fixed cost | $ 550,000.00 | |||||||||
| Discount rate | 12% | |||||||||
| Tax Rate | 30% | |||||||||
| Year | 1year | 2 year | 3 year | 4 year | ||||||
| Sales | 11250000 | 11250000 | 11250000 | 11250000 | ||||||
| Variable cost | 6750000 | 6750000 | 6750000 | 6750000 | ||||||
| Contribution | 4500000 | 4500000 | 4500000 | 4500000 | ||||||
| Fixed cost | $ 550,000.00 | $ 550,000.00 | 550000 | 550000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Operating Profit | 3450000 | 3450000 | 3450000 | 3450000 | ||||||
| Tax | 1035000 | 1035000 | 1035000 | 1035000 | ||||||
| PAT | 2415000 | 2415000 | 2415000 | 2415000 | ||||||
| Depreciation | 500000 | 500000 | 500000 | 500000 | ||||||
| Working Capital | 800000 | |||||||||
| Residual Value | 500000 | |||||||||
| Free Cash Flows | 2915000 | 2915000 | 2915000 | 4215000 | ||||||
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | ||||||
| Discounted Inflows | 2602678.571 | 2323820.153 | 2074839.422 | 2678709 | ||||||
| Sensitivity Analysis | ||||||||||
| Outflow | $ 3,300,000.00 | |||||||||
| Inflow | 9680046.847 | |||||||||
| NRV | $ 6,380,046.85 | |||||||||
| Unit Drivers | Expected NRV | Revised NRV | Change in % | |||||||
| Unit Sales (-20%) | $ 6,592,661.30 | $ 1,808,836.08 | 73% | |||||||
| Per Unit (-20%) | $ 6,592,661.30 | $ 4,870,484.22 | 26% | |||||||
| Variable Cost (+20%) | $ 6,592,661.30 | $ (7,567,461.35) | 215% | |||||||
| Cash Fixed Cost (+100000) | $ 6,592,661.30 | $ 6,380,046.85 | 3% | |||||||
Good Case
| Average selling price | $ 30.00 | ||||
| Expected sale | 450000 | ||||
| equipment cost | $ 2,500,000.00 | ||||
| Residual Value | $ 500,000.00 | ||||
| Working Capital | $ 800,000.00 | ||||
| Depreciation | SLM | ||||
| Variable cost | $ 15.00 | ||||
| Fixed cost | $ 450,000.00 | ||||
| Discount rate | 12% | ||||
| Tax Rate | 30% | ||||
| Year | 1year | 2 year | 3 year | 4 year | |
| Sales | 13500000 | 13500000 | 13500000 | 13500000 | |
| Variable cost | 6750000 | 6750000 | 6750000 | 6750000 | |
| Contribution | 6750000 | 6750000 | 6750000 | 6750000 | |
| Fixed cost | 450000 | 450000 | 450000 | 450000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Operating Profit | 5800000 | 5800000 | 5800000 | 5800000 | |
| Tax | 1740000 | 1740000 | 1740000 | 1740000 | |
| PAT | 4060000 | 4060000 | 4060000 | 4060000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Working Capital | 800000 | ||||
| Residual Value | 500000 | ||||
| Free Cash Flows | 4560000 | 4560000 | 4560000 | 5860000 | |
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | |
| Discounted Inflows | 4071428.571 | 3635204.082 | 3245717.93 | 3724136 | |
| Outflow | $ 3,300,000.00 | ||||
| Inflow | 14676486.52 | ||||
| NRV | $ 11,376,486.52 | ||||
| Average selling price | $ 25.00 | ||||
| Expected sale | 540000 | ||||
| equipment cost | $ 2,500,000.00 | ||||
| Residual Value | $ 500,000.00 | ||||
| Working Capital | $ 800,000.00 | ||||
| Depreciation | SLM | ||||
| Variable cost | $ 15.00 | ||||
| Fixed cost | $ 450,000.00 | ||||
| Discount rate | 12% | ||||
| Tax Rate | 30% | ||||
| Year | 1year | 2 year | 3 year | 4 year | |
| Sales | 13500000 | 13500000 | 13500000 | 13500000 | |
| Variable cost | 8100000 | 8100000 | 8100000 | 8100000 | |
| Contribution | 5400000 | 5400000 | 5400000 | 5400000 | |
| Fixed cost | 540000 | 540000 | 540000 | 540000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Operating Profit | 4360000 | 4360000 | 4360000 | 4360000 | |
| Tax | 1308000 | 1308000 | 1308000 | 1308000 | |
| PAT | 3052000 | 3052000 | 3052000 | 3052000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Working Capital | 800000 | ||||
| Residual Value | 500000 | ||||
| Free Cash Flows | 3552000 | 3552000 | 3552000 | 4852000 | |
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | |
| Discounted Inflows | 3171428.571 | 2831632.653 | 2528243.44 | 3083534 | |
| Outflow | $ 3,300,000.00 | ||||
| Inflow | 11614838.38 | ||||
| NRV | $ 8,314,838.38 | ||||
| Average selling price | $ 25.00 | ||||
| Expected sale | 450000 | ||||
| equipment cost | $ 2,500,000.00 | ||||
| Residual Value | $ 500,000.00 | ||||
| Working Capital | $ 800,000.00 | ||||
| Depreciation | SLM | ||||
| Variable cost | $ 12.00 | ||||
| Fixed cost | $ 450,000.00 | ||||
| Discount rate | 12% | ||||
| Tax Rate | 30% | ||||
| Year | 1year | 2 year | 3 year | 4 year | |
| Sales | 11250000 | 11250000 | 11250000 | 11250000 | |
| Variable cost | 5400000 | 5400000 | 5400000 | 5400000 | |
| Contribution | 5850000 | 5850000 | 5850000 | 5850000 | |
| Fixed cost | 450000 | 450000 | 450000 | 450000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Operating Profit | 4900000 | 4900000 | 4900000 | 4900000 | |
| Tax | 1470000 | 1470000 | 1470000 | 1470000 | |
| PAT | 3430000 | 3430000 | 3430000 | 3430000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Working Capital | 800000 | ||||
| Residual Value | 500000 | ||||
| Free Cash Flows | 3930000 | 3930000 | 3930000 | 5230000 | |
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | |
| Discounted Inflows | 3508928.571 | 3132971.939 | 2797296.374 | 3323760 | |
| Outflow | $ 3,300,000.00 | ||||
| Inflow | 12762956.43 | ||||
| NRV | $ 9,462,956.43 | ||||
| Average selling price | $ 25.00 | ||||
| Expected sale | 450000 | ||||
| equipment cost | $ 2,500,000.00 | ||||
| Residual Value | $ 500,000.00 | ||||
| Working Capital | $ 800,000.00 | ||||
| Depreciation | SLM | ||||
| Variable cost | $ 15.00 | ||||
| Fixed cost | $ 550,000.00 | ||||
| Discount rate | 12% | ||||
| Tax Rate | 30% | ||||
| Year | 1year | 2 year | 3 year | 4 year | |
| Sales | 11250000 | 11250000 | 11250000 | 11250000 | |
| Variable cost | 6750000 | 6750000 | 6750000 | 6750000 | |
| Contribution | 4500000 | 4500000 | 4500000 | 4500000 | |
| Fixed cost | $ 550,000.00 | $ 550,000.00 | 550000 | 550000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Operating Profit | 3450000 | 3450000 | 3450000 | 3450000 | |
| Tax | 1035000 | 1035000 | 1035000 | 1035000 | |
| PAT | 2415000 | 2415000 | 2415000 | 2415000 | |
| Depreciation | 500000 | 500000 | 500000 | 500000 | |
| Working Capital | 800000 | ||||
| Residual Value | 500000 | ||||
| Free Cash Flows | 2915000 | 2915000 | 2915000 | 4215000 | |
| Discounted Value | 0.892857143 | 0.79719 | 0.71178 | 0.63552 | |
| Discounted Inflows | 2602678.571 | 2323820.153 | 2074839.422 | 2678709 | |
| Outflow | $ 3,300,000.00 | ||||
| Inflow | 9680046.847 | ||||
| NRV | $ 6,380,046.85 | ||||
| Sensitivity Analysis | |||||
| Unit Drivers | Expected NRV | Revised NRV | Change in % | ||
| Unit Sales (-20%) | $ 6,592,661.30 | $ 11,376,486.52 | -73% | ||
| Per Unit (-20%) | $ 6,592,661.30 | $ 8,314,838.38 | -26% | ||
| Variable Cost (+20%) | $ 6,592,661.30 | $ 9,462,956.43 | -44% | ||
| Cash Fixed Cost (+100000) | $ 6,592,661.30 | $ 6,380,046.85 | 3% | ||
JB Hi Fi Company is officially listed on Australia Stock Exchange on 23/10/2003. The issuer code of the company is JBH. According to the rating companies risks are balanced. The shares applied in 2019 have been raised 50%. The stock price have been listed recently is ₹ 34.860 with the increase of Rs +0.520 and +1.51% has been raised according to the relevant sources referred by the JB HI FI company. The company’s trends changes and fluctuations takes place.
Jb Hi Fi Company has been operated as a listed holding company in Australia. The company consists of most popular and trusted retail brands of home appliances whether major appliances and small appliances, home entertainment appliances etc are operated mainly in Australia (Goldstein, et. al., 2017). These brands are JB HI-FI and The Good Guys. The Good Guys is the subsidiary company of JB HI-FI Company. The capital structure of the company can be analyzed by latest statistics referred from the Wall Street Journal.
PE Ratio means the price earnings ratio. The company PE ratio will show the actual market position of the company (Becker & Ivashina, 2015).The Highest the PE ratio the highest the company valuation. The company use this as an important analytical tool for the investors. It will be calculates as
P/E Ratio = Earnings per share / Market value per share
The PE ratio of the year 2019 is 16.0. This will show that the company is having good financial position and will have good image in the market.
The following graph will show you the movement of the PE ratio in the last years
(Figure: PE ratio)
(Source: Stockpedia, 2019)
It is recommended that the Jb Hi Fi Australian Company to all the investors as it follows all the basic and ethical behaviour and code of conduct necessary to follow by everyone. The directors, staff and employees expect all the guidelines are followed. As we have look upon the comprehensive examination and analysed the firm’s financial performance from the updated financial statements of JB Hi Fi Australia.
This time company is growing with the increasing trend. The only competitor in front of JBH is KGN that’s Kogan limited. This time the sales have been hiked 3.5% to 7.1% billion in 2019. In order to have safe and easy returns investors can invest in the company.
Being an investment analyst, it is recommended to all the investors to invest in the Jb Hi Fi.The Company is performing well in the year 2019 and can write many stories of success in the upcoming years. The share price fluctuations are normal of JB HI FI. Company is viable to pay the liquid liabilities.
After going through a quick replay of the above questions, PEratiooftheyear2019is16.0it is clear that company is having good financial position and have good image in the market.
JB Hi Fi Company is a progressive company. It has set a benchmark for all those who wish to invest in home appliances products such as electronic appliances whether major or small appliances belonging to the company under the name JB Hi Fi. According to the statistical analysis we can say that company shows the best work done in 2019. We came to know about all the details of the company, because we studied the entire financial situation thoroughly.
The data has been researched and finalized with an accurate analysis of its condition, leading to the conclusion that JB Hi Fi has a strong position in Australia. In 2018, the price to income ratio was 18 xs. The higher the price to income ratio, the more optimistic the buyer will be about the company’s future performance. A company can reduce the price to income ratio by purchasing debt and spending cash. If the price to income ratio increases then it is better to deal in other companies rather than Jb Hi Fi Australia company.