The Trotters enjoyed a fine first full campaign under Owen Coyle reaching the FA Cup semi-final and flirting with a challenge for a Europa League spot.
With six fixtures remaining they were eighth, just two points behind Liverpool in sixth spot.
But they failed to maintain the momentum in the closing stages of the campaign, losing 5-0 to Stoke City at Wembley and then sliding down the table to end up 14th.
Even so, Davies saw enough positive signs to convince him there is a bright future for the club he is proud to captain.
"There were a lot of highs as well as a couple of lows - particularly the FA Cup defeat.
"The good thing was that we responded really well and beat Arsenal in our next match but then it looks to outsiders as though we took our foot off the gas as we lost our last five fixtures.
"I don't think that was the case as we continued to give everything and we were in every match but just could not quite get the results.
"The disappointing thing is that having been eighth we were setting our sights higher but just could not quite keep it going.
"We feel we should have finished higher but it has been a very hard league this season - you only need to look at the number of clubs who were scrapping for survival.
"But we can take a lot of encouragement from it, both from the cup run and the way we performed for so much of the season to get to eighth with just a few matches left.
"We played some really good stuff, gates were up and there is a lot we can build on."
The Scot has made the team more attractive to watch although Davies says there has been no conscious shift in emphasis.
He added: "The manager has been great. He has not set out to change the style but he just makes sure we work hard and are well prepared then lets us play.
"He has a good style of man-management. He phoned me as captain the night he got the job which I thought was a great touch.
"I have a very good relationship with him and if there is anything the players need or want then I go straight to him and he sorts it out.
"He has got us well-organised with a good spirit and things are looking good for next season. Hopefully we can kick on from here, that is the aim."
Much will depend on who is brought in as a new strike partner for Davies following the departures of free agent Johan Elmander and Daniel Sturridge who has returned to parent club Chelsea.
The Trotters will also need to hang onto star performers like defender Gary Cahill who has caught the eye of several top clubs.
Davies hopes Cahill stays at Bolton this summer, but would not hold a grudge if the defender decided to move away from the Reebok Stadium.
Manchester City and Arsenal are both reported to want the £9m-rated centre-back following his excellent development in recent seasons.
Davies believes his team-mate is one of the 'outstanding defenders' in the Barclays Premier League and can understand why there has been transfer speculation.
The striker said of Cahill: "The manager has said himself that he has not had any concrete offers for him.
"But, for me, he is one of the outstanding defenders in the league, so you would expect bids to come in.
"As a club we would like to keep hold of him. If the club decides to do the business it will look to spend the money. But we would be more than happy to keep him."
Davies also insists that no-one at Bolton will think less of Cahill if he did join the likes of Arsenal or City, who can offer Champions League football next season.
He said: "We will see what happens. If he goes we will wish him well, none of us will begrudge him that move."
It has been a good season personally for the former Southampton and Blackburn Rovers frontman who is something of an undervalued player.
But he is also an efficient marksman finishing his ever-present campaign with eight Barclays Premier League goals.
Having made his England Under 21 debut against Greece in 1997, he finally won his first full cap in October 2010 when he came off the bench in a 0-0 draw against Montenegro.
He said: "That was a real highlight for me. I am a bit disappointed not to have followed it up with another cap but it is more than I thought I would have.
"I had written off ever getting a full England call-up and then suddenly it happened which was a very proud moment for me and my family."
Davies was speaking at the finals of the Premier League Schools Tournament at the Reebok Stadium where he presented the medals and trophies.
The results will be revealed in Goalmouth TV on Disney XD which will feature footage from the event on 9th June.
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