Ratio ANALYSIS OF BATA COMPANY

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•Solvency Ratios
Current Ratio: The company's current ratio improved and stood at 2.9x during
FY22, from 2.8x during FY18. The current ratio measures the company's ability to
pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and

stood at 42.33x during FY22, from 23.7x during FY18. The interest coverage ratio
of a company states how easily a company can pay its interest expense on
outstanding debt. A higher ratio is preferable.

•Profitability Ratios
Return on Equity: The ROE for the company improved and stood at 25.6%
during FY22, from 15.0% during FY18. The ROE measures the ability of a firm to
generate profits from its shareholders capital in the company.
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Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 46.3%
during FY22, from 23.9% during FY18. The ROCE measures the ability of a firm to generate profits
from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 20.86% during FY22,
from 11.6% during FY18. The ROA measures how efficiently the company uses its assets to
generate earnings.
No. of 2018 2019 2020 2021 2022
Months
Year
Ending
Current 28 29 30 32.61 33.44
Ratio
Interest 23.7 34.5 36.44 39.48 42.33
Coverage
Debt to 0.0 0.0 0.0 0.0 0.0
Equity Ratio
Return on 11.6 14.5 16.75 18.70 20.86
assets
Return on 15.0 18.9 19.4 22.4 25.6
equity
Return on 23.9 28.2 34.6 36.7 46.3
capital
employed