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JB Hi Fi Executive Summary

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The current ratios within the years 2013-2014 have improved for JB Hi Fi in 2013 as it stood at 1.27:1 whereas in 2014 it had increased it’s performance to 1.64:1. This has improved due to the current liabilities being reduced in 2014, which lead to the improvement of the total current assets. This ratio is mainly used to give an idea of the company’s ability to pay back its liabilities within its assets, which includes cash, inventory and receivables. In 2014 it showed a higher current ratio, which demonstrates that the company is more than capable in paying its debts. This gives a sense of efficiency of a company’s operating cycle to turn its product into cash. In the financial report the shareholders use this ratio in determining whether

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