Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing different forms of packaging containers. The diligence which Riordan is set with is a very competitive one. In comparability the in large quantities production of different companies the median of the 41 companies surveyed produces results which will foster Riordan continue to be a study competitor in the political party?s chosen field. trio points were reviewed when doing this exertion abridgment, received ratio, buckle under on assets, and solicitation catch. The results of the analysis dedicate been primed(p) on a bar graph to show where Riordan move on the median scale. Current RatioThe authoritative ratio shows that Riordan during the old age of 2003 and 2004 fell below the industry average by .06 and .07 respectively. This shows a decrease in the ratio of assets to liabilities. A decrease in assets and an increase in liabilities would guide further investigation as to the issue creatin g the problem so proper steps derriere be taken to unloosen this swerve around. Return on AssetsThe return on assets analysis showed a difference of .88 and 3.34 division when compared to the industry average over the same two socio-economic class period. Riordan?s numbers were high than the national average for the return on assets. This is a trend which the company should continue to try for in order to checkout competitive.

Collection PeriodFinally, when reviewing the collection period for Riordan and the industry average Riordan showed 1.9 age less clock time for collection in 2003 still increased th e collection period for accounts due by 12 ! days in 2004 when compared to the industry median. This event can have serious consequences on the company bills flow. The area of collections should be investigated in order to shorten the time frame for collections of receivables and provide the company with a better specie flow. ReviewWhen considering... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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