Financial

Statemen
t Analysis
of
Presented By
GROUP NO- 04

NAME ID
Shakawat Khanam 191 5263 660

Md. Arefin Ferdous 192 5323 660

Afra Nawar 191 5320 660

Kaniz Fatema 172 5066 660

Leather Industry
of Bangladesh
Contribution of Tannery Industry to the economy- USD 500 million. (EPB
Report)
Bangladesh has almost 170 tanneries which process raw hides into
finished leather and almost 161 leather factories.
The industry has been suffering a huge drop in the last few years due to
funds shortage, absence of integrated policy, political instability corruption
and illegal exports.
The International Finance Corporation (IFC) has suggested a roadmap with
strategies like producing high-end leather products, attracting massive
domestic investment, and enhancing the capacity of private sector
manufacturers
Company
Outlook
The Bata shoe organization was established in 1894 by Tomas Bata in the
city of Zlin.
Bata provides more than 1 million customers with fashionable and high
quality shoes. They have more than 5300 international retail outlet.

It started its journey on Bangladesh from 1962.

Bata Shoe Company limited has two manufacturing plants which are
located at Tongi and Dhamrai.
its annual shoe sales are about 30 million pairs daily.
Objective of the
study
To analysis the satisfaction of customer aspect of Bata (shoe) Company
Bangladesh Ltd.
To identify the problems customer face in the shoe market.

To make ratio analysis for comparing current year performance with

previous year performances.

To determine the growth rate of total assets and equity of the company.

To determine the profit and loss of the company.

To develop some recommendations for improvement of marketing

strategy for customer satisfaction of Bata company ltd.
Methodology
Annual report of 2014 to 2018 has been used for analysis.

Information derived from Balance sheet and Income statement has been
used for ratio analysis.

Data has been analysed in Microsoft Excel for calculation.

Performance Evaluation is done on the basis of the findings and theoretical

knowledge learnt from the course whether Bata (Shoe) Company Limited
is financially strong in the market or not.
 RATIO
ANALYSIS
  YEAR 2014 2015 2016 2017 2018
Current Ratio 1.71 1.95 1.98 2.01 2.01
Liquidity & Activity Ratio

Quick Ratio 0.65 0.81 0.91 0.91 0.96

Receivables Turnover 17.73 9.40 8.63 7.27 4.72
Inventory Turnover 2.29 2.25 1.79 1.45 1.41

Gross Profit Margin 38.77% 40.23% 43.45% 44.76% 44.18%

Profitability Ratio

Net Profit Margin 8.67% 9.76% 11.87% 12.67% 10.44%

Return on Asset 14.30% 15.88% 15.91% 14.78% 11.30%
Return on Equity 27.25% 28.05% 29.33% 27.12% 20.94%
Earnings Per Share 51.22 60.8 76.24 83.76 72.7
Price-Earning Ratio 22.33 21.68 14.98 13.99 15.36
TREND
ANALYSIS RATIO =
F CURRENT
s
CURRENT RATIO
Year 2014 2015 2016 2017 2018
Current 1.80 2 1.98 2.01 2.01
Ratio

Current Ratio
2.05 2.01
2 2.01
2 1.98
It is an indication of
a firms market
1.95
Current Ratio

1.9
1.85 liquidity and ability
1.8
1.8 to meet creditors
1.75
1.7
demand.
1.65
2014 2015 2016 2017 2018
Year
TREND
ANALYSIS RATIO =
Fs
 QUICK
QUICK RATIO
Year 2014 2015 2016 2017 2018
Quick ratio 0.68 0.87 0.96 0.95 0.92

Quick Ratio
1.20

1.00 0.96 0.95

It measures the
0.800.68
0.87 0.92
ability of the
company to use its
Quick Ratio

0.60

0.40
near cash or quick
0.20
assets to extinguish
0.00 or retire its current
2014 2015 2016 2017 2018
Year
liabilities.
TREND  RECEIVABLES TURNOVER

ANALYSIS
Fs
RECEIVABLES TURNOVER =

Year 2014 2015 2016 2017 2018

Receivables 17.73 9.40 8.63 7.27 4.72
turnover

Receivables Turnover The ratio shows how

20.00
18.00
17.73 well a company uses
16.00 and manages the credit
Receivables Turnover

14.00
12.00
9.40
it extends to customers
10.00 8.63
8.00 7.27 and how quickly that
6.00
4.00
4.72
short-term debt is
2.00
0.00
collected or is paid.
2014 2015 2016 2017 2018
Year
TREND   INVENTORY TURNOVER=

ANALYSIS
Fs
INVENTORY TURNOVER
Year 2014 2015 2016 2017 2018
Inventory 2.29 2.25 1.79 1.45 1.41
Turnover

Inventory Turnover
2.5
2.29 2.25
It measure for evaluating
2 just how efficient
1.79
management is at
Inventory Turnover

1.5 1.45 1.41

managing company
1
inventory and generating
0.5 sales from it.
0
2014 2015 2016 2017 2018
Year
TREND
ANALYSIS MARGIN=
 PROFIT
Fs
PROFIT MARGIN

Year 2014 2015 2016 2017 2018

Profit Margin
8.67% 9.76% 11.87% 12.67% 10.44% It tells about the % of
Profit Margin profit earned by the
14.00%
12.67%
firm in any
12.00% 11.87%
10.44%
accounting period.
10.00% 9.76%
Profit Margin

8.67%
8.00%
6.00%
4.00%
2.00%
0.00%
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Year
TREND
ANALYSIS
F s ASSET TURNOVER=
ASSET TURNOVER

Year 2014 2015 2016 2017 2018

Asset 1.73 1.63 1.34 1.17 1.08
Turnover

Asset Turnover
It measures the
2
1.8 1.73
1.63 efficiency of a
1.6
1.34
company’s use of its
Asset Turnover

1.4
1.17 1.08
1.2
1
0.8
assets in generating
0.6
0.4
sells revenue of sells
0.2
0 income to the
2014 2015 2016 2017 2018
Year
company.
TREND   RETURN ON ASSET=

ANALYSIS
Fs
RETURN ON ASSET

Year 2014 2015 2016 2017 2018

ROA 15.01% 15.88% 15.91% 14.78% 11.30%

Return on Asset It shows the % of

18.00%
16.00% 15.01%
15.88% 15.91% how profitable a
14.00%
14.78%
company’s assets are
Return on Asset

12.00%
10.00%
11.30%
in generating
8.00%
6.00% revenue.
4.00%
2.00%
0.00%
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Year
TREND   RETURN ON EQUITY=
RETURN ON EQUITY
ANALYSIS Fs

Year 2014 2015 2016 2017 2018

ROE 27.25% 28.05% 29.33% 27.12% 20.94%

Return on Equity It measures the

35.00%
29.33%
efficiency of a firm
30.00% 28.05%
27.25%
27.12% at generating profits
Return on Equity

25.00%
20.00% 20.94%
from each unit of
15.00%
10.00%
shareholder equity.
5.00%
0.00%
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Year
TREND
ANALYSIS
Fs  EPS=
EARNING PER SHARE

Year 2014 2015 2016 2017 2018

Earnings 51.22 60.8 76.24 82.34 72.79
Per Share The EPS ratio
measures the amount
Earnings Per Share of a company’s net
90
80 76.24
82.34 income that is
72.79
70 theoretically available
Earnings Per Share

60.8
60
50
51.22
for payment to the
40
30 holders of its
20
10
common stock.
0
2014 2015 2016 2017 2018
Year
TREND
ANALYSIS
Fs  P/E=
PRICE EARNING RATIO

Year 2014 2015 2016 2017 2018

P/E 22.88 21.67 14.98 13.99 15.34

The P/E ratio shows

Price Earnings Ratio
25 current investor
22.88
20
21.67
demand for a company
share.
Price-Earning Ratio

15 14.98 15.34
13.99

10

0
2013 2014 2015 2016 2017 2018 2019
Year
TREND
ANALYSIS
F s  DEBT TO ASSET RATIO=
DEBT TO ASSET RATIO

Year 2014 2015 2016 2017 2018

Debt Ratio 44.91% 43.38% 45.74% 45.50% 46.02% The debt to assets ratio
Debt to Total Asset Ratio indicates the proportion of
46.50%
a company's assets that
46.02%
46.00% 45.74%
are being financed with
Debt To Total Asset ratio

45.50%
45.50%
45.00%
44.50%
44.91%
debt, rather than equity.
44.00%
43.50% 43.38%
The ratio is used to
43.00% determine the financial
42.50%
42.00%
2014 2015 2016 2017 2018
risk of a business.
Year
Recommendation

Minimising Focus on price

accrued setting to
expenses boost sells.

Increase
Minimize
investment from
overhead cost
retained earnings
than taking loans
Conclusion
High Sales on
amount of export
debt decreasing

Enable
Good brand
competitive
value
advantages
Any Question?