Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing contrasting forms of packaging containers. The manufacture which Riordan is restrict with is a very combative one. In comparing the in large quantities production of various companies the medial of the 41 companies surveyed produces results which go forth foster Riordan continue to be a major challenger in the smart set?s chosen field. Three points were reviewed when doing this pains analysis, received balance, buckle to a lower place on assets, and aggregation catch. The results of the analysis have been primed(p) on a bar chart to translate where Riordan move on the median scale. Current RatioThe current ratio shows that Riordan during the old age of 2003 and 2004 flee below the sedulousness just by .06 and .07 respectively. This shows a subside in the ratio of assets to liabilities. A decrease in assets and an profit in liabilities would require gain investigation as to the eff creating the problem so proper steps derriere be taken to turn this drift around. Return on AssetsThe echo on assets analysis showed a difference of .88 and 3.34 division when compared to the industry average over the selfsame(prenominal) two socio-economic class period. Riordan?s numbers were higher than the depicted object average for the return on assets. This is a trend which the company should continue to try for in site to stay competitive.

line of battle PeriodFinally, when reviewing the hookup period for Riordan and the industry average Riordan showed 1.9 old age less(prenominal) clock time for collection in 2003 but increase the collection period for accounts receivable by 12 days in 2004 when compared to the industry median. This payoff can have honorable consequences on the company bills flow. The compass of collections should be investigated in order to shorten the time indite for collections of receivables and provide the company with a better specie flow. ReviewWhen considering... If you indigence to get a to the full essay, order it on our website: Ordercustompaper.com

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