Date 12.09.2024 Bata India Timeframe : Weekly Chart
Operating profit margin: - Incase of footwear exporters, the share of EBITDA constitutes not only operating income and also the share of government exporter incentives. OPM for Bata India is 22.78 % which is strong which allows the investors to look into the overall return on capital.
Debtor days: - The receivable days are fairly high in the case of footwear companies. The footwear exporters should always take care of the time taken by the buyers to complete their operating cycle. Bata India has a debtor day of 8.53 which is significantly a good sign towards the cash conversion cycle.
Capital structure (or) Debt to Equity: - The footwear sector is consistently increasing capacity, expanding retail presence and setting up new manufacturing facilities over the years. So it is important to check whether the leverage is highly dependent on debt or equity. Bata India has a D/E ratio of 0 which is comfortably placed as compared to its peers.
Interest coverage ratio: - It measures the company’s ability to handle its outstanding debt, a higher ratio is always desirable. Bata India has an ICR of 3.77 which is unattractive to investors when compared with the company's growth.