The company I want to critically analyze is called JB Hi-Fi. Its ticker symbol is JBH.AX. JB Hi-Fi is a Listed public company in Australia, its commercial financing is comprehensive, and it gains the earning mainly by retailling in the field of electronic equipments and products, softwares and household appliances. It has not only more than 300 offline stores throughout Australia and New Zealand, but an complete and efficient website as well to provide consumers a variety of services in their field and industry. I am a game enthusiast, I am obsessed with games on all major platforms. As all we known, JB Hi-Fi also sells Games and many famous brands of game peripherals of controllers, displayers, and keyboards. Personally speaking, it is this is the best place to shop, and …show more content…
It is also one of the most famous Australian retail companies for selling electronics. It purchase the dick smith company which was the biggest competitor of JB Hi-Fi. It has $57.5 million total debt and $172.6 total equity in 2022. Its debt-to-equity ratio is 0.33 which is lower than that of JB Hi-Fi. But has little difference. In my opinion, this may due to the similar industry condition and the same model of the business investment. Meanwhile, the similar capital structure, the internal operations and the management of board system also cause this similarity. From their annual report, they have the same objective which is to seek the lower cost of the capital. Moreover, JB Hi-Fi has a policy to increase its term debt facility to buy-back the offmarket share whereas There is currently no on market buy‑back policy in Kogan. This maybe a signal that the share price of JB Hi-Fi is underestimated. I reckon this is why JB HI-Fi has larger proportion of debt in its capital structure.and has higher debt-to-equity ratio. Futhermore, the investment of expanding in New Zealand also need massive money and this will increase its debt
In this case, we can say that Amazon performance is a lot better than CanGo. A high Debt to Equity Ratio generally means that a company has been aggressive in financing its growth with debt. Debt can come in the form of stocks, bonds, and loans that the company borrowed against. Amazon current ratio is 1.31, but CanGo current ratio is 5.33. In general we can see that CanGo is performing better in this area compared with their main competitor Amazon, because this ratio shows that CanGo is capable of repaying its debts and liabilities than
Even though Lowe 's has rising financial leverage, it is still more heavily financed by equity
This can potentially be a problem if they were to understock the shelves and not have enough inventory for customers to purchase, but they have been doing a great job with this overall. The next major trend I noticed was that their total debt ratio was higher than investors like to see. The ratio has declined over the past for years by only 3%, but it is still considered high. The total debt ratio shows us the company’s total debt, as a percentage of its total assets. Casey’s total debt ratio is hovering around 60% which is concerning for future investors.
I would concentrate on debt to asset ratio also. Boot Barn reported a .70 debt to asset ratio which is typically high because the company is being supported by debt rather than equity. I would investigate increasing sales and decrease overhead as much as possible to lower the debt to asset ratio. Another option would be debt to equity swap which would make a debt holder an equity shareholder in the company. This act would cancel the debt owed to him and would lower the ratio and reduce debt to the
Dick’s Sporting Goods is a very profitable company that has been around on the market more than 60 years. They are a company that is well above what is always projected and expected. The following they have from customers is one of the highest in the sporting goods industry. The fortune 500 company is so profitable due to the many locations, the plethora of inventory, and the helpful and courteous staff they hire. When looking at the income statement of the company I notice right off the bat that the company has improved its net sales year after year since 2009.
With this data, Massachusetts Stove Company is in a good financial position in terms of liquidity and
Week 6 written assignment AY2023- T5 – BUS 5111 The University of the People BUS 5111-Financial Management Instructor: Dinesh Tandon Date: 26th July 2023 Introduction As the nature of business growth, a private company needs solutions or methods to expand its business or deal with the company's debt by issuing debt or issuing stock to the public.
The company being analyzed in this paper is Target. The stock ticker of the company is TGT. The company is in the Consumer Defensive sector and in the Discount Stores industry. The company stock has a .829 correlation to the sector and a .943 correlation to the S&P 500. The company has a Michael Porter 5-star rating of 2 out of 5 stars.
All of these factors also increased the debt of
Cost of equity was calculated using the 10 year UST rate, 5.02%, because it is a good measurement of the risk free rate, plus the firm’s beta, 0.56, multiplied by the risk premium, which we concluded to be 5%. This gave Blaine, when unlevered, a WACC of 7.82%. When taking the $40 million debt and $100 million cash buyout of stocks into account, cost of debt is now a factor. Cost of debt was 5.88%, the bond rating of a AAA rated company like we assume Blaine
JB Hi-Fi Limited is a leading retailer in Australia and New Zealand, providing a wide range of consumer electronics, home appliances, and music products. The company operates in a highly competitive retail industry that is subject to changes in consumer behavior and economic conditions. JB Hi-Fi has a solid market position and a well-established brand, with over 300 stores across both countries. The company reported strong financial results in the 2020 financial year, with revenue and net profit increasing by 12.6% and 21.5%, respectively.
Both companies achieved a market share price increase of 84%. Fairfax had an increase on dividends paid per share which when reflected with its increased share price brings it on par with the previous year. APN paid no dividend. 9. Investment recommendations
Walmart has a 29.03 payout ratio which is much higher than Costco which is at 26.4 and Target which has a payout ratio of 20.0. These ratios help investors and Wall Street analyst understand how companies can successfully manage debt and at the same time become profitable while meeting the needs of the consumers. It is expected and realistic to see that Walmart has a large debt ratio, however, this debt ratio must be understood from an organic and holistic point of view to give credence to the ability of the executive team at the organization. Organizations are entities that are not any different from an analysis point of view than that of actual
JB Hi-Fi Limited (JBH) 1. Macro economic factors and Industry Analysis a. Describe the firms economic environment and evaluate how this has impacted historic firm performance and is likely relevant to future performance. b. Perform an industry analysis and evaluate the level of competition in the industry/ies that your firm operates 2. Business Strategy Analysis Identify the key success factors and risks of the firm 's strategy and the sustainability of profits generated by the strategy given the threat of competition.
Cost of Capital Analysis The GraceKennedy Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for owners and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. During 2014, the Group’s Strategy, which was unchanged for 2013, was to maintain a debt to equity ratio not exceeding 100%. The debt equity ratios at 31 December 2014 is a