Abstract

The report is critically analyzes and summaries the key findings of the annual report on Bata Shoe Company Bangladesh Ltd (Annual Report 2010). Furthermore the report explored the interpretation of the performance indicators and understands the trends of the performance of the company. In addition, the report presents a depth understanding on the theoretical concepts and its practice of financial statements. Finally based on the findings possible recommendations for Bata Ltd is made. This report was prepared mainly based on the secondary data available in the market. The secondary data was collected from Annual Report of Bata Ltd, the internet, Different text book and journals, newspapers and the companys annual reports. The report prepared from the analysis of the raw data is of the formal type and the information from the secondary data was used to support the findings of the financial analysis. From the analysis of Bata Shoe Company Bangladesh Ltd it is identified that Bata Company is in a financially sound position though its Operating Profit margin is a bit lower from the industry standard. In addition it is also found that Batas solvency, stable liquidity position and efficient business operation. Its performance is poor considering its Inventory Turnover. The Operating Cash Flow Ratio of Bata indicates the company is not generating enough cash to pay off its short-term debt which is an alarming situation for the company. The amount of dividend payment is very lucrative as it is found that the amount of retained earnings represents a good health of the company.