Riordan Manufacturings Financial Ratios

Riordan Manufacturings Financial Ratios Dr. Riordan, a professor of chemistry who obtained several(prenominal) patents answer to processing polymers into high tensile potency charge habitation substrates, puted Riordan Manufacturing. Riordan Manufacturing is a worldwide plastics manufacturer. The club employs 550 people with probable scribble of $46 million. The company is completely owned by Riordan Industries, a Fortune 1000 enterprise with revenues in surplus of $1 billion. This paper will summarize the pecuniary state of Riordan Manufacturing, Inc. (RMI) found numerous financial symmetrys, used in conjunction with the financial statements, to analyze the companys financial condition. LIQUIDITY RATIOS: go around SOLVENCY dining table 1: Current Ratio The sure balance is the peak of the degree to which genuine assets cover current liabilities. A proportion of more than one suggests that it can knuckle under most of its debts at that point in time. The ability to efficaciously turn products into interchange is a good sign of a companys financial state. The hobby table provides a comparison of Riordans current dimension for 2004 and 2005: 2005 2004 Current assets $14,555,092 2.09 clock$14,643,4562.43 times Current liabilities$6,974,094 $6,029,696 Current assets are change integrity by current liabilities to determine the current balance. Riordans current ratio is 2.09, and this suggests that the company is efficient in operating its business cycle. The persistence ratio is 2.04. Riordans current ratio is above perseverance average, which centre that Riordan is able to meet short obligations or play short-term characterors. ACTIVITY RATIOS: ASSET LIQUIDITY, ASSET MANAGEMENT EFFICIENCY slacken 2: Accounts Receivable Turnover Ratio The accounts receivable (A/R) overturn ratio reflects the relationship between unpaid credit sales to good credit sales. It indicates, in general, the eff ectiveness (or lack of it) of a firms credit! policies and cash collection...If you want to get a rise essay, stray it on our website: OrderEssay.net

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