Financial Analysis; Bata Shoe Company Private Limited

Bc. Gauravkumar Rameshbhai Kabariya, BA

Master's thesis

Abstract:

In a financial analysis, there exist tools, ratios or instruments, (which might be linked in some manner, or free from any affiliation whatsoever) which are used to dissect and evaluate the company’s finances; and if practicable, put forth assumptions or deductions – as the case may be – to ascertain whether or not the firm is progressing in a positive direction. However, to be more specific, the mechanisms used in financial analysis usually are used to perform evaluations on the functioning and operation of said company, and the course towards the performance thereof is inclined. A financial analyst, to all intents and purposes, seeks to transform the available data into sets of figures or statistical end results; these financial metrics facilitate the task of decision making. The study being conducted looks to perform a substantive analysis of the financial status of Bata India and to also make assessments on what impacts are exerted on the business’s sustainability by its financial position. Furthermore, in financial statements, the aftermath of the control, and utilization of the resources placed under the jurisdiction of the management is reflected. In a quest to reach the slated goals, the financial statement presents information and, in some cases, the needed statistics on the subject of a firm’s liabilities, assets, equity, revenue and expenditure (inclusive of the profits and losses), the company’s cash flows, contribution by and distribution to owners in their capacity as owners. In India, Bata India sits pre-eminently as the foremost manufacturer and biggest retailer of footwear; the company is however a daughter organization which stems from the Bata Shoe Organization. To achieve this, a set of parameters (financial instruments) referred to as financial ratios were used in conducting the study. The research places particular focus on five of the financial ratio types which include; the profitability ratio, activity ratio, liquidity ratio, market/valuation ratio and ventures into the leverage ratio to some extent. The research works with the instruments over the course of 10-business years. It is however worthy of mention that the 10 business years do not follow consecutively for the fact that the company had a 15-month business year from the start of 2014, and closed in March, the next year. This goes to show that Bata India still could improve on how they go about their business. In terms of performance, they showed some glimpses of excellence with some profitability ratios and activity ratios. The firm does not look to be in any serious debt, and enjoys a very high potential of repaying its creditors.

Keywords

Financial analysis, Bata India, business sustainability, ratio analysis, financial position, performance, assets and creditors

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2021

Thesis defence

• Supervisor: Ing. Karel Malec, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management