Fastest Growing Market of Electronic Goods

Question: Describe about the Fastest Growing Market of Electronic Goods. Answer: The fastest growing market of electronic goods has created massive competition for JB Hi-Fi Ltd, one of the biggest retailers of electronic consumer goods operating in Australia and New Zealand. Being one of the largest retailers of Australia, JB Hi-Fi Ltd has got different sources of revenue such as retail stores and online market by selling contemporary electronic goods. Under the current business scenario, JB Hi-Fi Ltd has secured a revenue of AU$4 billion whereas the operating income has been identified as AU$221 million (JB Hi-Fi | JB Hi-Fi Corporate, 2016). The Good Guys, the only subsidiary of the organisation has helped the corporation to increase revenue margin in the Australian and New Zealand electronic goods market. On the basis of the balance sheet of the last financial year, it can be identified as there are two major asset classes such as fixed asset and current asset available to the organisation. The fixed asset of JB Hi-Fi Ltd includes properties, patents and copyright of the newly launched electronic devices and appliances (HalÃ…â„ ¢, 2011). Also, the digital video content rights sold by the organisation can be categorised as fixed asset. On the other hand, the inventory, bank cash and receivables of the organisation have been considered as the current assets available to the organisation for future growth perspective (Elliott and Elliott, 2008). Also, the identification of the major categorise listed among the groups equity has shown how the shareholders have been benefitted from their investment in the recent time. The current business environment has provided significant sales opportunities in the two primary target markets. As of 2016, the total shareholders equity has been identified as AU$404.7 million (Harrison, Horngren and Thomas, 2013). The financial data of the electronic goods selling organisation has show the ultimate profitability of the shareholders investing money to the organisations stock. On the basis of the evidence of the financial statement of the organisation, the identified cash flow per share is AU$1.83 whereas the free cash flow per share is AU$0.39 (JB Hi-Fi | JB Hi-Fi Corporate, 2016). Understandably, 671,849 ordinary shares were issued to employees in 2016 financial years. Now, looking at the analysis given above, it can be seen that the earning per share for the company is around $1.58 per share while the dividend paid to the shareholders is around $1 per share in the year 2016 (JB Hi-Fi | JB Hi-Fi Corporate, 2016). Hence, the dividend paid for the company has increase by around 11 percent which increases the shareholders value and provides the company with a better positioning in the share market. Hence, a person holding 100 shares will get a dividend of $100. Clearly, the dividends per share and the earnings per share are somewhat different for the organisation. Meanwhile, in the last financial year of 2016, the organisation has paid 0.37 cents per share as dividends. Conversely, earning per share has been AU$1.25. Through the analysis of earnings per share and dividends per share it is clear that the shareholders have got nominal dividend, to say the least (DvoÃ…â„ ¢kov, 2009). As far as the financial health of the organisation is concerned, such dividend policy is significantly impressive. Understandably, the earnings per share have shown the strength of the performance of the companys stocks. References Anon, 2016.JB Hi-Fi | JB Hi-Fi Corporate. [online] Jbhifi.com.au. Available at: https://www.jbhifi.com.au/General/Corporate/Shareholder-Matters/Financial-Annual-Reports/ [Accessed Sep. 2016]. DvoÃ…â„ ¢kov, D., 2009. Historical Costs versus Fair Value Measurement in Financial Accounting.European Financial and Accounting Journal, 2009(3), pp.6-18. Elliott, B. and Elliott, J., 2008.Financial accounting and reporting. Harlow: Financial Times Prentice Hall. HalÃ…â„ ¢, Z., 2011. Accounting System and Financial Performance Measurements.European Financial and Accounting Journal, 2011(3), pp.38-65. Harrison, W., Horngren, C. and Thomas, C., 2013.Financial accounting. Boston: Pearson.