The following are the ratio analysis of

Bata Shoe Company LTD (BD) for the

year ended 2012 :
01 . Current/working capital ratio = current asset
current liabilities
.

= 2,965,537,715
1,989,905,077

= 1.49 : 1
02. Acid test/ quick test ratio = current asset
inventories
.
current liabilities
= 2,965,537,715 -

1,888,784,523

1,989,905,077

= 0.54 : 1

03. Total debt ratio = total asset total equity

total assets
.

= 3,980,023,320 - 1,854,000,579
3,980,023,320

= 0.53 %

04. Debt equity ratio = total debt

total equity
.

= .53
.47

100% - 53%

(note : equity =

= .47 %)
= 1.12 %

5. return on asset = net income

total asset
.

= 16,895,538
3,980,023,320
= 0.42 %

Note : here number of share number of shares outstanding is

not available, so EPS & PE ratio is not possible.

N B : All the industrial average ate taken from

th

Principles by kieso 10 edition.

Accounting

Subject /
components

Calculated
result

Industrial ratio
average

1.. current
ratio

1.49 : 1

1.28 :1

2.. quick ratio

0.54 : 1

.33 : 1

3.. total debt

ratio

0. 53 %

91. 6 %

4.. debt equity

ratio

1 .12 %

2%

5. return on
asset

0.42 %

8.29 %