JB Hifi Marketing Analysis Proof Reading Service

JB Hifi Marketing Analysis Essay Oz Assignments

JB Hifi Marketing Analysis Proof Reading Service

Part A

Sr no.	Particulars	Amount
1	Cash and cash equivalents	72.8
2	Inventories	859.9
3	Sales revenue	562.8
4	Other income	2.0
5	Plant and Equipment	208.2
6	Interest Expense (finance costs)	10.7
7	Sales and marketing expense	580.1
8	Occupancy expenses	248.6
9	Trade and other payables	647.8
10	Borrowings (non-current)	558.8

Sr no.	Particulars	Normal Balance	Effect due to decrease
1	Cash and cash equivalents	23.5	DEBIT
2	Inventories	257.2	DEBIT
3	Sales revenue	4383.2	CREDIT
4	Other income	6.4	CREDIT
5	Plant and Equipment	35.2	DEBIT
6	Interest Expense (finance costs)	10.5	DEBIT
7	Sales and marketing expense	546.6	DEBIT
8	Occupancy expenses	183.5	DEBIT
9	Trade and other payables	322.6	CREDIT
10	Borrowings (non-current)	7.9	CREDIT

(Source: JB HI FI, 2018)

Part B

1 The different types of revenues generated by the consolidated group are through the sale of the goods industrial marketing and the services, commissions made by the group and rendering of the services to the clients and the customers. The current value of these types of the revenues is 5628 and the other income includes the amount of the 1230.5 (JB HI FI, 2018).

2 The group assets are classified as current assets and non-current assets. The bifurcation of the assets is outlined below with respect to its current values(Frino, Hill and Chen, 2015).

BIFURCATION OF THE ASSETS				2017
Current assets
Cash and the Cash equivalents				72.8
Trade and other receivables				196.6
Inventories				859.9
Other current assets				41.4
				1170.7
Non-current assets
Plant and Equipment				208.2
Differed tax Assets				-
Intangible assets				1026.6
Other non-current assets				46.8
				1281.6

3 The major categories that are listed among the group’s equity are as follows. The ordinary shares of the JB hi-fi Limited at the end of the financial year are $105572 which is fully paid ordinary shares and the executive share options $322105.

Shareholders’ Equity				Amount
Contributed Equity				438.7
Reserves				33.2
Retained Earnings				381.6

Total Shareholders’ Equity				853.5

(Source JB HI FI, 2018)

The current liability of the group is 885.8.

B The final dividend declared by the JB Hi fi is 118 cents per share amongst which the fully franked dividend is 46 cents per share. Therefore if only 100 shares of ordinary nature are owned in the JB HI FI Limited than the amount of the dividend will be 46 cents per share (JB HI FI, 2018).

C If the amount of the interim dividend is added to the current year’s dividend per share the total amount of the dividend is summation of (63+46) which equals to 109 per share(CHEN, 2017).

D The last year dividend which is paid in the current year period is 72 per share (CHEN, 2017).

E The dividend per share of the JB HI FI is 46 per share and the earnings per share of the company are given below. The earnings per share ratio gauges how profitable the company is per share of the stock and the dividend per share determines the amount of the dividends received per share basis (JB HI FI, 2018).

Earnings per share				2017

Net Income				172.4
Weighted Average Equity shareholders				619.75
				0.28

Dividend Pay-out Ratio			2017

Dividends			46
Net Income			172.4

			27%

The dividend pay-out ratio of the company is 27%.

Part C

1 The subsidiary company of the JB HI FI Group is The good guys.

2 The value of the group sales revenue for the current and the previous year is outlines below.

Sales Value	2016	2017	% change
	3.95	5.63	43%

3 The value of the group’s final profit revenue for the current and the previous yearisoutlinesbelow.

Final Profit	2016	2017	% change
	152.2	172.4	13%

4 After analysing the comparison the final profit of the company has increased only because of the revenue increased from 3.95 to 5.63 in the year 2017. The percentage change of the 43% in the change of the revenue is because the JB HI FI is engaged in innovation and the diversification of the products and this approach provides the opportunities for the company to increase the revenues and the profits. The company has also increased the volume of sales through the opening up of the stores(Vasarhelyi, Kogan and Tuttle, 2015).

5 The inventories of the financial year of 2016 and the year 2017 are presented below.

Inventories	2016	2017	% change
	546.4	859.9	57%

The percentage change in the value of the inventories is 57% and the same has been reported due to the purchase of the more goods and the products. Moreover the higher bunch of the inventory indicates the out flow of the cash and hence the company needs to sell out the stock more which will not only improve the revenue but also enhance the productivity of the organisation(Mainini, and Moretto, 2017).

6 The profit margin ratio of the JB hi fi company is 31% and the return on equity is 41% which is a major crystal of the company and hence the company is performing outstandingly(Joshi, 2015).

Profit margin ratio				2017
Net profit	17240000
Sales	56300000			31%



Inventory turnover ratio
Inventory * 365	8599000			55.7484
Sales	56300000

Profitability ratios					2013

Profit margin ratio

Net profit			11640000		35%
Sales			33100000

Return on Equity

Net Income - Dividends		11640000			41%
Shareholders’ Equity		28090000