Ratio Analysis Memo (Riordan Manufacturing)
LTD Ratio Analysis Memo
ACC 291
Memorandum
Monday, March 4th, 2013
To: CEO, Riordan Manufacturing Inc.
From: Financial Analyst LTD
Listed below you will find a quick analysis of the company using productivity, Liquidity and solvency ratios. This analysis is accompanied by vertical and horizontal analysis. These analysis gives anyone inquiring a good picture of the company’s overall performance. This analysis is also a good way to determine the company’s financial standings for the said years.
According to the analysis in the year 2004, Riordan’s current ratio was 2.429 and in 2005 the current ratio improved to 2.087. The decrease in this ratio gives anyone inquiring a clear picture of how financially stable the company was in 2004 and 2005. It is also good information for anyone planning to invest in Riordan.
Riordan manufacturing has developed as a producer of plastics as well as foam-based products. It is without a doubt that this success has come from the consistency that the company has been representing over the last two years. Through the audit and review Riordan Manufacturing has been very consistent from fiscal year 2004 to fiscal year 2005. The greatest of these consistencies would have to be accounts receivable that grew by 7.2%. Many outside entities that range from potential stockholders to creditors for future endeavors will view these numbers.
Riordan Manufacturing did maintain the same amount of current assets between both of the reviewed years. The current assets are a worthy representation of the company’s ability to keep and maintain profits. The stockholders will mostly be interested in this line as it is a respectable judge for the potential for growth of the company.
Another area that the company had a slight growth in is the total assets for the company. Riordan had growth in their total assets by just over 2%. An abundant amount of this growth was because the company’s investment in tangible assets such as
ACC 291
Memorandum
Monday, March 4th, 2013
To: CEO, Riordan Manufacturing Inc.
From: Financial Analyst LTD
Listed below you will find a quick analysis of the company using productivity, Liquidity and solvency ratios. This analysis is accompanied by vertical and horizontal analysis. These analysis gives anyone inquiring a good picture of the company’s overall performance. This analysis is also a good way to determine the company’s financial standings for the said years.
According to the analysis in the year 2004, Riordan’s current ratio was 2.429 and in 2005 the current ratio improved to 2.087. The decrease in this ratio gives anyone inquiring a clear picture of how financially stable the company was in 2004 and 2005. It is also good information for anyone planning to invest in Riordan.
Riordan manufacturing has developed as a producer of plastics as well as foam-based products. It is without a doubt that this success has come from the consistency that the company has been representing over the last two years. Through the audit and review Riordan Manufacturing has been very consistent from fiscal year 2004 to fiscal year 2005. The greatest of these consistencies would have to be accounts receivable that grew by 7.2%. Many outside entities that range from potential stockholders to creditors for future endeavors will view these numbers.
Riordan Manufacturing did maintain the same amount of current assets between both of the reviewed years. The current assets are a worthy representation of the company’s ability to keep and maintain profits. The stockholders will mostly be interested in this line as it is a respectable judge for the potential for growth of the company.
Another area that the company had a slight growth in is the total assets for the company. Riordan had growth in their total assets by just over 2%. An abundant amount of this growth was because the company’s investment in tangible assets such as