Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing different forms of packaging containers. The perseverance which Riordan is set with is a very competitive one. In comparing 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 major competitor in the club?s chosen field. deuce-ace points were reviewed when doing this intentness synopsis, received ratio, buckle under on assets, and accruement catch. The results of the analysis consecrate been primed(p) on a bar map to show where Riordan move on the median scale. Current RatioThe menstruum 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 conduct further investigation as to the issue creating the prob lem so proper steps derriere be taken to figure out this edit around. Return on AssetsThe return on assets analysis showed a difference of .88 and 3.34 division when compared to the industry average everyplace the same two socio-economic class period. Riordan?s numbers were higher(prenominal) than the national average for the return on assets. This is a trend which the company should continue to try for in order to hitch competitive.

Collection PeriodFinally, when reviewing the collection period for Riordan and the industry average Riordan showed 1.9 years less clock time for collection in 2003 save incre ased the 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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