Riordan Financial Status And Analysis

1021 words - 4 pages

Summary of Riordan's financial statusFigures in Riordan's financial statements and the computations of its financial ratios suggest that the company is in a precarious financial state. While Riordan has some working capital and an acceptable current ratio, its quick ratio (which is a better indicator of a company's health) falls below acceptable standards. At 56%, its debt to equity ratio is excessive by industry standards and implies that the company heavily relies on debt to facilitate operations. While it generated a positive net profit in 2005, its profit margin and return on assets are lower than that of other businesses within its industry--this suggests that Riordan may have problems regarding profitability.Financial analysisRiordan does not have enough cash to pay off its current liabilities and long-term debt. This may mean that Riordan is having problems converting assets to cash, and may be danger of bankruptcy--comparing its cash to its debts shows that Riordan appears to be relying on long-term debt to survive. Riordan also has a very high inventory, which means that they are having difficulties selling products for profit. A huge chunk of its assets are also tied up to receivables--suggesting that the company may be having problems collecting payment.On a positive note, its current ratio is close to the ideal, which signals that Riordan's management is efficient in managing its cash flows. However, Riordan's quick ratio (which is a better indicator of a company's financial health) comes out as very low compared to acceptable standards. Its debt to equity ratio is also very high, further affirming that it relies too much on debt to finance its operations. As such, lending institutions may be less willing to lend financial assistance to the company. In addition to this, while Riordan's sales, gross margin, operating profit, and net profit have increase from the previous fiscal year, its profit margin and return on assets have shown lackluster performance--this shows that the company's profitability leaves much to be desired.Balance sheet analysisRiordan's balance sheet can be analyzed to determine the value of the company. The balance sheet reports the assets, liabilities and net worth at a specific period in time--it provides a "snapshot" of the company's financial standing at a certain point or instant in time. Particularly, Riordan's balance sheet reflects the company's position in that instant when all transactions for September 30 (the end of its fiscal year) were recorded. It shows what Riordan owns, as well as debts as of September 30.Information on the balance sheet presents valuable information to banks and financial institutions in determining whether or not Riordan could qualify for loans and other forms of financial assistance. Current and potential investors can also look into it as a means of valuation of the company's net assets.Important financial ratios and statistics generated from figures in the balance sheet are...

Find Another Essay On Riordan Financial status and analysis

Pride and Prejudice: Marrying Someone due to his or her Financial Status

2245 words - 9 pages . The scheme of marrying someone due to his or her financial status is still a plight of the current society, yet there is a stark contrast between this time period and that of the nineteenth century. Modern day brings a new definition of marriage along with the old; it is one of true companionship and the potential promise of a lifetime with an inimitable counterpart. It is not one of the manifold “practices of elegant females,” (19.17) and

Motorola and Nokia Company Financial Analysis

1666 words - 7 pages For the analysis, I selected Motorola and Nokia. The two companies control a dominant share of the cellular handset market. Successful competition in the cellular equipment industry requires companies that can plan for change, identify their worldwide position, and recognize trends in their financial results and in the tastes of their customers.Motorola Cash Flow, Revenue and Income AnalysisOver the past three years, Motorola struggled mightily

Johnson and Johnson financial ratio analysis

1405 words - 6 pages and markets products for hospitals, diagnostic laboratories and clinics. According to the company’s own website, JNJ.com, it has more than 250 Johnson and Johnson operating companies which employs approximately 120,500 men and women in 57 countries and sell products throughout the world. Johnson and Johnson was ranked 32nd on the 2006 Fortune 500. Below is an analysis of Johnson and Johnson’s financial ratio analysis:Long Term Debt ratio is a

Financial Statement and Ratio Analysis: Key Tools to Successful Financial Management

2633 words - 11 pages Financial Statement and Ratio Analysis: Key Tools to Successful Financial Management Executive SummaryHow do firms assess their own strengths and weaknesses? How does a firm measure management's performance? Finally, how do firms compare themselves against the competition? The answer to these questions lies in the fundamentals of financial management. A crucial element in the success of any business organization is understanding the fundamentals

Financial analysis report of Unilever and Colgate Palmolive

2293 words - 9 pages A FINANCIAL ANALYSIS REPORT OFUNILEVER &COLGATE - PALMOLIVEPrepared byNguyễn Phương ThảoNguyễn Mạnh QuânNguyễn Minh ThủyLê Trọng KhánhLê Phương DungProfessor: Pham Sy LongEXECUTIVE SUMMARYThis financial analysis report examines two big competitors within the household and personal products industry: Unilever and Colgate - Palmolive (or Colgate). Overall

Financial analysis report of Unilever and Colgate Palmolive

2293 words - 9 pages A FINANCIAL ANALYSIS REPORT OFUNILEVER &COLGATE - PALMOLIVEPrepared byNguyễn Phương ThảoNguyễn Mạnh QuânNguyễn Minh ThủyLê Trọng KhánhLê Phương DungProfessor: Pham Sy LongEXECUTIVE SUMMARYThis financial analysis report examines two big competitors within the household and personal products industry: Unilever and Colgate - Palmolive (or Colgate). Overall

Financial Analysis of Matalan and House of Fraser

2501 words - 10 pages Investment Analysis Matalan & House of Fraser Introduction In this essay I would like to elaborate on the investment analysis of two companies, open a space of possibilities in discourse and practices in order to determine which of the two companies to invest in. The essay will commence with a brief overview of the two companies that are being considered. The latter part of the essay will explain and critique the financial

Economic and Financial Viability Analysis of Renewable Energy Projects

2131 words - 9 pages This chapter discusses the theory underlying measurements of asset utilization as a way to provide support to economic and financial viability analysis of Renewable Energy Projects (REPs). It starts by providing an overview of the literature for economical and financial viability analysis within the Renewable Energy Sector and follows revealing the gap in the literature that this thesis tackles. 2.1 Challenges for Business Evaluation of REPs

Babcock and brown japan property trust financial analysis

2479 words - 10 pages of the major currencies and may enter into hedging contracts with banks from time to time whenever the management detects any movements in the respective exchange rates which may impact on the Trust's profitability.Company RatiosRatio analysis involves methods of calculating and interpreting financial ration to analyze and monitor the firm's performance. Ratio analysis of a firm's financial statements is of interest to shareholders, creditors

analysis of financial statements of LVMH in comparison to PPR and richmont

4108 words - 16 pages and the profit of €2.026 billion. Considering the current recession in the world economy these numbers should be carried out by a very strong managerial team which was our main persuasion for choosing LVMH to evaluate its yearly financial reports. This project aims to analyze the LVMH financial report as a single company and in comparison to the year before (2007) and benchmark it with Pinault-Printemps-Redoute (PRR), the main same size

Strategic Analysis of Jet Blue Airlines: Executive Summary, Financial, Internal and External Industries, Competitors, Substitutes, and Stategies.

7722 words - 31 pages Strategic Analysis of Jet Blue AirlinesExecutive SummaryJetBlue is a company built on a focus strategy of low-priced, no-hassle ticketing and refreshingly efficient customer service. The company began with the goal to eliminate many of the complexities and asininities of commercial air travel and set a new standard for customer service. Thus far the company has flown beyond these goals and everyone's expectations while returning a handsome

Similar Essays

Riordan Manufacturing: Financial Analysis

1921 words - 8 pages Riordan Manufacturing PAGE \* Arabic \* MERGEFORMAT 2 Running head: RIORDAN MANUFACTURINGRiordan Manufacturing: Financial AnalysisUniversity of PhoenixBSA 500 - Business Systems IAbstractThis paper provides comprehensive information about the overall financial status of Riordan Manufacturing; a detailed analysis of the corporation's current accounting information systems; and an overview of the information and management systems that should

Riordan Financial Analysis

1070 words - 4 pages show and equal gain of 2.13% from 2004 through 2005.Common-Size AnalysisCommon-size analysis compares what proportion that an expense reduces sales, especially useful when comparing previous years. It is also useful when comparing similar companies of different sizes to see if they have the same financial structure.In the common-size comparative income statement for Riordan Manufacturing Inc., the profit margin ratios, or the "ratio of net

The Financial Status Of Pepsi Co, Inc. And Coca Cola

4351 words - 17 pages When looking at the financial status of PepsiCo, Inc. and Coca-Cola, every dollar amount in every column has some significance. To find out what these amounts represent a financial comparison of both companies is required. Using financial analysis tools such as vertical analysis, horizontal analysis, and ratio analysis, one can get a clearer picture of the financial status of each company. Horizontal Analysis When evaluating financial

Motorola And Nokia Financial Analysis

903 words - 4 pages For the financial analysis, I selected Motorola and Nokia. The two companies control a dominant share of the cellular handset market. Successful competition in the cellular equipment industry requires companies that can plan for change, identify their worldwide position, and recognize trends in their financial results and in the tastes of their customers.Company OverviewsMotorola, founded in 1928, was originally known as Galvin Manufacturing