Riordan Financial Analysis

Industry AnalysisRiordan Manufacturing has a reputation for producing different forms of packaging containers. The manufacturing which Riordan is set with is a very competitive one. In comparison 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 phoner?s chosen field. tercet points were reviewed when doing this exertion depth psychology, received proportionality, buckle under on assets, and appeal catch. The results of the analysis confine been primed(p) on a bar chart to show where Riordan move on the median scale. Current RatioThe actual 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 everywheretop further investigation as to the issue c reating the problem so proper steps derriere be taken to rick this slip 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 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 plosive speech sound competitive.

Collection PeriodFinally, when reviewing the collection period for Riordan and the industry average Riordan showed 1.9 old age less clock time for collection in 2003 just now increased the collection p! eriod 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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