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Financial analysis of
Bata and serves

BY THE ROCK……
Financial analysis of Bata and
Servis
 MOHAMMAD KASHIF

NAVEED UL HASSAN
GROUP
members NAEEM SAJJAD

PIRZADA ARSLAN SABRI

ARSLAN TARIQ

MOHAMMAD IFTIKHAR
 Contents

1 PROFITABILITY RATIO’S

2 Debt & Leverage Ratio’s

3 Liquidity & Working Capital Ratio’s

Shareholder ratio’s
4
 BATA SHOES

Current Ratio:
Current Ratio = Current
Assets / Current Liabilities
Bata shoes

Year 2007 2008

Current Assets 1398003 1652271

Current Liabilities 808720 734907

Current ratio 1.73 2.25

Servis shoes

Year 2007 2008

Current Assets 1591361 2427082

Current Liabilities 1896571 1896571

Current ratio 0.840 1.280

Current Ratio chart
2.5

1.5

Current Ratio Bata

Current Ratio Servis
1

0.5

0
20x7 20x8
 SERVIS SHOES

Quick Ratio:
Quick ratio=current assets-
stock/current liabilities
Bata shoes
Year 2007 2008
Current assets-stock 628007 377982
Current liabilities 808720 734907
Quick ratio 0.78 0.51

Servis shoes

Year 2007 2008

Current assets-stock 892505 2308826

Current liabilities 1896571 1896571
Quick ratio 0.471 1.218
Quick Ratio chart
1.4

1.2

0.8
Quick Ratio 20x7
0.6 Quick Ratio 20x8

0.4

0.2

0
Bata Servis
Avg. Inventory Turnover Period:
Avg. inventory period = inventory / cost
of sales*365
Bata shoes

Year 2007 2008

Inventory 769996 1274289
Cost of sales 2327134 2942432
Avg inventory period 120.78 158.08

Servis shoes

Year 2007 2008

Inventory 698556 1182566

Cost of sales 3809633 5355170

Avg inventory period 66.92 80.60

Avg. Inventory Turnover Period chart

180

160

140

120

100 Avg. Inventory Turnover

Period 20x7
80 Avg. Inventory Turnover
Period 20x8
60

40

20

0
Bata Servis
Accounts Receivable Collection Period:
Avg account receivable period=trade
receivable/sales*365

Bata shoes
Year 2007 2008

Trade receivable 3482 893

Sales 3964187 5106578

Avg account receivable 0.321 0.064

Servis shoes
Year 2007 2008

Trade receivable 1904 2844

Sales 4521147 639323

Avg account receivable 0.15 1.62

Accounts Receivable Collection Period chart

1.8

1.6

1.4

1.2

1 Account Receivable collection

Period Bata
0.8 Account Receivable collection
Period Servis
0.6

0.4

0.2

0
20x7 20x8
Accounts Payable Payment Period:
  Account payable payment period =
Account payable / Purchases*365

Bata shoes

Trade payable 711212 663818

Purchases 2327134 2942432
Avg account payable 111.54 82.35

Servis shoes

Trade payable 572625 800999

Purchases 3809633 5355170
Avg account payable 54.87 54.60
Accounts Payable Payment Period chart

120

100

80

Account Payable Payment

60 Period Bata
Account Payable Payment
Period Servis
40

20

0
20x7 20x8
Gross Profit Margin:
Gross profit = gross profit/sales*100

Bata shoes
Year 2007 2008
Gross profit 1637053 2164116
Sales 3964187 5106578
Gross profit margin 41.29 42.37

Servis shoes

Year 2007 2008

Gross profit 711514 1038153
Sales 4521147 6393323
Gross profit margin 15.73 16.24
Gross Profit Margin chart
45

40

35

30

25
Gross Profit Margin Bata
20 Gross Profit Margin Servis

15

10

0
20x7 20x8
Net profit margin:
Net profit margin= PBIT/sales*100

Bata shoes

Year 2007 2008

PBIT 503999 663822
sales 3964187 5106578
Net profit margin 12.71 12.99

Servis shoes

Year 2007 2008

PBIT 236180 878203
sales 4521147 6393323
Net profit margin 5.23 13.74
Net profit margin chart

16

14

12

10

8 Net Profit Margin Bata

Net Profit Margin Servis
6

0
20x7 20x8
Assets turnover ratio:
Assets turnover ratio=sales/cap
employment

Bata shoes

sales 3964187 5106578

Cap employed 206334 191251
Assets turnover ratio 19.21 26.70

Servis shoes

sales 4521147 6393323

Cap employed 576630 523901

Assets turnover ratio 7.85 12.21

Assets turnover ratio chart

30

25

20

15 Assets Turnover Ratio 20x7

Assets Turnover Ratio 20x8

10

0
Bata Servis
Return on capital employed:
Return on capital
employed=PBIT/capital employed*100

Bata shoes
663822
PBIT 503999
191251
Capital employed 191251 206334
Return cap employed 2.64 3.22

Servis shoes

Year 2007 2008

PBIT 236180 478203
Capital employed 576630 523901
Return cap employed 0.41 0.913
Return on capital employed chart

3.5

2.5

2
Return on Capital Employed
Bata
1.5 Return on Capital Employed
Servis

0.5

0
20x7 20x8
Earning Per Share- EPS:
Earning Per Share = Profit after Taxation
Number of Shares

Bata shoes
Year 2007 2008
Profit after Taxation 358637 477775
Number of Shares 100000 100000
Earning Per Share 3.587 4.778

Serves shoes

Year 2007 2008

Profit after Taxation 161480 340680
Number of Shares 120288 120288

Earning Per Share 1.35 2.83

 Earning Per Share-
chart

3 EPS Ratio Bata

EPS Ratio Servis

0
20x7 20x8
 Price / Earning Ratio:
Price / Earning Ratio = Stock Price Per Share
Earning Per Shares

Bata shoes

Stock price per share 10 10

EPS 3.587 4.778
Price / Earning Ratio 2.78 2.09

Serves shoes

Year 2007 2008

Stock price per share 10 10
EPS 1.35 2.83

Price / Earning Ratio 7.40 3.53

Price / Earning Ratio
chart

4 P/E Ratio Bata

P/E Ratio Servis
3

0
20x7 20x8
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