Riordan Manufacturings Financial Ratios

Riordan Manufacturings Financial Ratios Dr. Riordan, a professor of chemistry who obtained several(prenominal) patents fit to processing polymers into high tensile potency charge family substrates, raiseed Riordan Manufacturing. Riordan Manufacturing is a worldwide plastics manufacturer. The confede symmetryn employs 550 people with probable come up 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: defraud SOLVENCY dining table 1: Current Ratio The present-day(prenominal) balance is the peak of the degree to which menstruum assets cover current liabilities. A proportion of more than one suggests that it can hire most of its debts at th at point in time. The ability to in effect 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 propagation$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 ratio. 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 marrow that Riordan is able to meet short-term oblig ations or play short-term characterors. ! ACTIVITY RATIOS: ASSET LIQUIDITY, ASSET MANAGEMENT EFFICIENCY sidestep 2: Accounts Receivable Turnover Ratio The accounts receivable (A/R) dollar volume ratio reflects the relationship between unpaid credit gross revenue to good credit sales. It indicates, in general, the effectiveness (or lack of it) of a firms credit policies and cash collection...If you want to get a in force(p) essay, stray it on our website: OrderEssay.net

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