Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing different forms of packaging containers. The persistence which Riordan is set with is a very competitive one. In canvass 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 order?s chosen field. trio points were reviewed when doing this constancy compendium, received proportionality, buckle under on assets, and collecting catch. The results of the analysis attain been primed(p) on a bar map to show where Riordan move on the median scale. Current RatioThe period 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 overtop further investigation as to the issue creating the probl em so proper steps derriere be taken to play 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 persist in competitive.

Collection PeriodFinally, when reviewing the collection period for Riordan and the industry average Riordan showed 1.9 geezerhood less clock time for collection in 2003 exactly increased the col lection 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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