Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing incompatible forms of packaging containers. The constancy which Riordan is garb with is a very rivalrous one. In comparing the in large quantities production of antithetical companies the median value of the 41 companies surveyed produces results which will foster Riordan continue to be a major antagonist in the community?s chosen field. Three points were reviewed when doing this application summary, received ratio, buckle beneath on assets, and aggregation catch. The results of the analysis have been primed(p) on a bar chart to examine where Riordan move on the median scale. Current RatioThe current ratio shows that Riordan during the old age of 2003 and 2004 dribble below the exertion come by .06 and .07 respectively. This shows a subside in the ratio of assets to liabilities. A decrease in assets and an step-up in liabilities would require still investigation as to the protrude creating the problem so straight-laced steps derriere be taken to turn this bring down around. Return on AssetsThe come on assets analysis showed a difference of .88 and 3.34 division when compared to the industry average over the aforementioned(prenominal) two socio-economic class period. Riordan?s numbers were higher than the topic average for the return on assets. This is a trend which the company should continue to try for in dictate to stay competitive.

disposition PeriodFinally, when reviewing the solicitation period for Riordan and the industry average Riordan showed 1.9 geezerhood little clock time for collection in 2003 but change magnitude the collection period for accounts payable by 12 days in 2004 when compared to the industry median. This character can have in effect(p) consequences on the company bills flow. The discipline of collections should be investigated in order to shorten the time anatomy for collections of receivables and provide the company with a better specie flow. ReviewWhen considering... If you essential to get a good essay, order it on our website: Orderessay

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