Jb Hifi and Harvey Norman Comparision
Executive summary-
The purpose of this report is to compare the financial report of the two ASX listed companies they are Harvey Norman and JB Hi-Fi. It provides an analysis and evaluation of the current and previous profitability, liquidity and financial stability of both companies. Methods of analysis include financial ratio analysis for example profitability and performance ratio, liquidity ratio, financial and stability ratio by reviewing the financial report of two companies. It also review the industry analysis, highlighting the size of the industry in Australia, the level of competition and the significant environmental factors facing by these two particular companies and the industry as a whole. Further, it discusses about the ethical and /or corporate governance issues these companies are facing and how these issue are being addressed.
We have chosen those two companies from same industrial area so that it will be easier for us to analyze their data in a close view. These two companies have focused their business in retailing electric, electronic items and DVDs. Comparatively our primary company JB Hi-Fi is relatively smaller in size as regarding the assets used by them but interestingly, it has got some better results than the other company in various ratios which will be discussed later in the same report.
Introduction-
Australia has thousands of retail shops either they are having physical store or they are just online business. It definitely increases the chances of high competition in their price variation, quality of the product and service they offer. These are business things and these sort of data emphasize only in their marketing strategy and business stamina. But what can we do If someone is thinking of analyzing the real strength of those companies regarding their business health and their performance in last fiscal years?
We have tried to solve some of these question in our report which will merely focus on the financial status and its
The purpose of this report is to compare the financial report of the two ASX listed companies they are Harvey Norman and JB Hi-Fi. It provides an analysis and evaluation of the current and previous profitability, liquidity and financial stability of both companies. Methods of analysis include financial ratio analysis for example profitability and performance ratio, liquidity ratio, financial and stability ratio by reviewing the financial report of two companies. It also review the industry analysis, highlighting the size of the industry in Australia, the level of competition and the significant environmental factors facing by these two particular companies and the industry as a whole. Further, it discusses about the ethical and /or corporate governance issues these companies are facing and how these issue are being addressed.
We have chosen those two companies from same industrial area so that it will be easier for us to analyze their data in a close view. These two companies have focused their business in retailing electric, electronic items and DVDs. Comparatively our primary company JB Hi-Fi is relatively smaller in size as regarding the assets used by them but interestingly, it has got some better results than the other company in various ratios which will be discussed later in the same report.
Introduction-
Australia has thousands of retail shops either they are having physical store or they are just online business. It definitely increases the chances of high competition in their price variation, quality of the product and service they offer. These are business things and these sort of data emphasize only in their marketing strategy and business stamina. But what can we do If someone is thinking of analyzing the real strength of those companies regarding their business health and their performance in last fiscal years?
We have tried to solve some of these question in our report which will merely focus on the financial status and its
Bibliography: ABS, 2011. Topics@a glance- Retail. [Online] Available at: http://www.abs.gov.au/websitedbs/c311215.nsf/20564c23f3183fdaca25672100813ef1/724b3848d2a4ab0aca256d600022a07e!OpenDocument ASX, 2012. Harvey Norman Holdings Limited(HVN). [Online] Available at: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=HVN ASX, 2013. JB HI-FI LIMITED(JBH). [Online] Available at: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=JBH Harvey Norman, 2012. Harvey Norman Company Profile. [Online] Available at: http://www.harveynormanholdings.com.au/pdf_files/Company_Profile_2012.pdf Hoggett, J. et al., 2012. Analysis and interpretation of financial statements. In: Accounting 8th edition. Milton: John Wiley & Sons Australia,Ltd, pp. 1061-1069. JB Hi-Fi, 2012. JB Hi-Fi Annual Report 2012. [Online] Available at: http://www.jbhifi.com.au/documents/reports/119_2012-09-14_11-11-23.pdf Jb Hi-Fi, 2013. Jb Hi-Fi Limited (JBH). [Online] Available at: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=JBH