Bata Shoe Company Ltd.

Ratio Analysis
2012
Current Ratio = current asset / Current Liabilities
= 2965537715/1989905077
= 1.49: 1

Interpretation: Here current ratio is higher than 1. So it is acceptable and

beneficial for the company

Quick Ratio = current asset inventories/ current liabilities

= 2965537715-1888784523/1989905077
= 0.54:1

Interpretation: The ideal quick ratio is 1:1. But here quick ratio is lower than 1. So
it is not acceptable

Inventory turnover = cost of goods sold/ Inventory

= 4718566064/1888784523
= 2.50 times
Interpretation: Bata company has very good inventory control in 2012. Bata
companys turnover is 2.50
times. This means that Bata company sold 2.50 time
its inventory during the year.
Average collection period= accounts receivable/ annual sales 365
= 276562580/ 7384505735 365
= 13.67 days
Interpretation:

Bata Shoe Company Ltd.

Ratio Analysis
2013
Current Ratio = current asset / Current Liabilities
= 3563927850/2204746568
= 1.62:1

Interpretation: Here current ratio is higher than 1. So it is acceptable and

beneficial for the company

Quick Ratio = current asset inventories/ current liabilities

=3563927850 -2167843253/2204746568
= 0.63:1
Interpretation: The ideal quick ratio is 1:1. But here quick ratio is lower than 1. So
it is not acceptable

Inventory turnover = cost of goods sold/ Inventory

= 4857762141/2167843253
= 2.24 times
Interpretation: Bata company has very good inventory control in 2012. Bata
companys turnover is 2.50
times. This means that Bata company sold 2.50 time
its inventory during the year.
Average collection period= accounts receivable/ annual sales 365
= 435657233/ 7878975170 365
= 20.18 days