JB Hi-Fi Ltd -Analysis of Company Financial Information
* Evaluate the performance of a company through a critical analysis of its published financial statements over the last 2 years as follows:
* Locate, extract and analyse data from the published financial statements to provide a comprehensive analysis of a company’s operations and performance;
* Structure an argument based on the analysis of five aspects of performance evaluation:
* Short term solvency
* Long term solvency
* Market based ratios
* Present a clear, well-structured report using appropriate style and language.
The Retail Industry in Australia is under pressure from many angles and growth in this sector is becoming increasingly difficult to achieve. According to The Australian Bureau of Statistics, the retail sector overall has grown only modestly over the 2011-12 period with sales increasing by just 1.5% to $21600 million. Extremely difficult trading conditions driven mainly by low consumer confidence, uncertainty surrounding government policies, rising un-employment rates and the latest consumer trends where saving money and reducing debt is growing in popularity means it is becoming increasing difficult to get consumers to spend their hard earned money in retail stores. On top of that, consumer goods retailers are facing a market which has been negatively affected by a rise in the number of consumers choosing to shop online due to the vast product range, competitive pricing and lack of GST payable on goods purchased from overseas retailers.
According to the NAB On-Line Retail Sales Index- In depth report January 2012- January 2012, on-line retail sales during the period grew 29% compared with just 2.5% for traditional bricks and mortar retail.
With the continuing rising costs associated with traditional retailing and low growth...