Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2018
  • Case
  • HBS Case Collection

Bata versus Relaxo—Analyzing Performance

By: Suraj Srinivasan, Iris Leung and Quinn Pitcher
  • Format:Print
  • | Language:English
  • | Pages:17
ShareBar

Abstract

Set in 2016, “Bata India versus Relaxo—Analyzing Performance” compares the strategies and financial performance of two Indian footwear companies. Bata India had long been the market leader in footwear in India, but its leading market position was being challenged by Relaxo, a relatively young, upstart company. The case is framed from the perspective of an emerging markets financial analyst presented with the financial statements and operational data for both companies. The analyst has to compare and contrast the performance of the two companies based on financial ratios. Students can apply the traditional DuPont decomposition framework to drill down into the business model of the two companies. The case then allows students to use the modified (also known as additive or alternate) DuPont approach with the goal of systematically understanding the differences that arise from operating performance, leverage, and the effect of large cash holdings (in Bata). In doing so, students learn the components of the traditional and modified DuPont frameworks and how to analyze financial statements to better understand how firm performance can arise from operating and financing decisions. The traditional DuPont framework provides for a methodical evaluation of performance for each business, but it has its limits: it does not separate operating assets and liabilities from financing assets and liabilities. When the financing components are separated and reclassified using the modified DuPont framework, students can clearly observe the crucial role that financing activities vis-à-vis operating activities can have in amplifying performance.

Keywords

Finance; Strategy; Operations; Performance Evaluation; Financial Statements; Analysis; Apparel and Accessories Industry

Citation

Srinivasan, Suraj, Iris Leung, and Quinn Pitcher. "Bata versus Relaxo—Analyzing Performance." Harvard Business School Case 119-050, December 2018.
  • Educators
  • Purchase

About The Author

Suraj Srinivasan

Accounting and Management
→More Publications

Related Work

    • December 2018
    • Faculty Research

    Bata versus Relaxo—Analyzing Performance

    By: Suraj Srinivasan, Iris Leung and Quinn Pitcher
    • April 2019
    • Faculty Research

    Bata Versus Relaxo Modified DuPont Calculations Teaching Note Supplement

    By: Suraj Srinivasan
    • April 2019
    • Faculty Research

    Bata Versus Relaxo Exhibits and Rations Teaching Note Supplement

    By: Suraj Srinivasan
Related Work
  • Bata versus Relaxo—Analyzing Performance By: Suraj Srinivasan, Iris Leung and Quinn Pitcher
  • Bata Versus Relaxo Modified DuPont Calculations Teaching Note Supplement By: Suraj Srinivasan
  • Bata Versus Relaxo Exhibits and Rations Teaching Note Supplement By: Suraj Srinivasan
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College