Jb Hifi and Harvey Norman Comparision

Executive summary- The purpose of this report is to compare the financial report of the two ASS listed companies they are Harvey Norman and JOB Hi-If. 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 lord 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 DVD's.Comparatively our primary company JOB Hi-If is relatively smaller in size as regarding the assets used y 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 trench 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 performance of those companies in last few years. So we have chosen two of those electronic goods seller in Australia which are listed in Australian Stock Exchange.We have presented a close comparison of these two companies- JOB Hi-If and Harvey Norman in our report which, we hope, will be able to give a clear understanding of- * Comparison of how each of those impasses performed in past four years. * Brief comparison of dividends and stock price history.

* Are the companies poised for explosive growth or on the brink of disaster? * And several other things which we will be discussed in later section. Overview of primary company B Hi-If)- B Hi If is one of the Australia's largest and fastest growing retailer of electronic goods and entertainment system.It also offers a range of video games, decentralized music, DVD music and movies. It was established in year 1974 and started its business from selling Hi-If equipment. JOB HI-If is an ASS listed company which grew room single store in Victoria to 168 stores at present day scenario. It has sales revenue of $3.

13 billion last year which was 35% less than the revenue collected by Harvey Norman. JOB Hi-If is purely an electrical, electronic and entertainment goods seller in comparison to Harvey Norman which has extended its business in furniture and bedding goods selling b Hi-If, 2013).If we analyze the graph below, in spite of upsetting share value in Gag/Seep 2012, JOB HI-If has recovered after, and there is remarkable growth in value of per share. (ASS, 2013) Overview of secondary company (Harvey Norman)- Established in 1982 Harvey Norman is a public company which retails electrical, computer, furniture, entertainment, and bedding goods.

It is a franchise business and the main brand is owned by Harvey Norman Holdings Limited. Harvey Norman currently holds control over 210 franchised stores Australia wide and have franchise in 8 other countries which operates under its main Harvey Norman store format.If we see statistics, its sales revenue in year 2012 was $1407. 342 million which lowered by 9. 6% of last year.

With a regression of 32% annual income lowered down to $176. 3 lion (Harvey Norman, 2012). The graph below is per date 22/01/2013 which shows the present share value of Harvey Norman in regarding a comparison to last 12 months. Surprisingly the value of each share went down since September 2012 which was reached to its lowest point in the end of 2012.

ASS, 2012) Industry Analysis- There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JOB Hi-If and Harvey Norman both of the companies belong to retail industry that mainly focus on ailing of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers.

For instance, the same LOG refrigerator costing $2500 at Harvey Norman - is available to American consumers from Amazon for Just under SIS$1 500. (Kane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I Just anted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement too.