Riordan Finance and Accounting
Running head: RIORDAN FINANCE AND ACCOUNTING
Riordan Manufacturing Finance and Accounting System
University of Phoenix
BSA/500
Ms. Deborah Webb
Week 6 Team Assignment
17 November 2008
Investment in the rubber and plastics industry requires serious analysis of a number of key corporate behaviors. To evaluate Riordan’s Finance and Accounting Systems, knowledge of their industry and line of business is necessary. Economic influences affecting their operations and business strategy must be considered as well. An examination of Riordan’s accounting system and modules is provided followed by calculations of their liquidity, profitability and activity ratios. The pecuniary data, along with historical information, is evidence to their financial status and health of the company. This analysis provides data to compare with other leaders in the same industry so an intelligent and informed investment decision can be reached.
Riordan Manufacturing Overview and Business Environment
Riordan Manufacturing, Inc., located at One Riordan Plaza, San Jose, California is the global leader in the manufacturing of plastic injection molds and plastic designs. Riordan products include plastic bottles, fans, heart valves, medical stents and customer plastic parts (Apollo Group, Inc., 2008). A Fortune 1000 company dedicated to quality and extreme precision, Riordan has become a recognizable company in its industry. Riordan Manufacturing is wholly owned by Riordan Industries and provides its unique services worldwide in areas that include California, Georgia, Michigan and China. Riordan employs 550 people with revenues in excess of $1 billion and projected annual earnings of $46 million.
In 1992, Dr. Riordan gained venture capital to purchase a fan manufacturing plant in Pontiac Michigan where Riordan Manufacturing was originally incorporated. Today the Michigan plant is the main manufacturer of custom plastic parts. By 1993 the company became a producer of plastic beverage
Riordan Manufacturing Finance and Accounting System
University of Phoenix
BSA/500
Ms. Deborah Webb
Week 6 Team Assignment
17 November 2008
Investment in the rubber and plastics industry requires serious analysis of a number of key corporate behaviors. To evaluate Riordan’s Finance and Accounting Systems, knowledge of their industry and line of business is necessary. Economic influences affecting their operations and business strategy must be considered as well. An examination of Riordan’s accounting system and modules is provided followed by calculations of their liquidity, profitability and activity ratios. The pecuniary data, along with historical information, is evidence to their financial status and health of the company. This analysis provides data to compare with other leaders in the same industry so an intelligent and informed investment decision can be reached.
Riordan Manufacturing Overview and Business Environment
Riordan Manufacturing, Inc., located at One Riordan Plaza, San Jose, California is the global leader in the manufacturing of plastic injection molds and plastic designs. Riordan products include plastic bottles, fans, heart valves, medical stents and customer plastic parts (Apollo Group, Inc., 2008). A Fortune 1000 company dedicated to quality and extreme precision, Riordan has become a recognizable company in its industry. Riordan Manufacturing is wholly owned by Riordan Industries and provides its unique services worldwide in areas that include California, Georgia, Michigan and China. Riordan employs 550 people with revenues in excess of $1 billion and projected annual earnings of $46 million.
In 1992, Dr. Riordan gained venture capital to purchase a fan manufacturing plant in Pontiac Michigan where Riordan Manufacturing was originally incorporated. Today the Michigan plant is the main manufacturer of custom plastic parts. By 1993 the company became a producer of plastic beverage
References: Apollo Group, Inc. (2008). Riordan Manufacturing. Internet – Overview. Retrieved October 10, 2008, from BSA/500 – Business Systems I. https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/IndexPort.htm Elite, a Thomson Reuters Company (2008) Leichter, J (2007, March). Benchmarking Your Business with Financial Ratio Analysis. Contracting Business, Vol. 64, Iss.3; Pg. 82-84. Retrieved November 4, 2008, from ProQuest database. Nickels, W. G. (2005). Understanding Financial Information and Accounting. Available from the University of Phoenix eBook Collection database. Yahoo Finance. (2008). Rubber and Plastics Industry. Retrieved November 12, 2008 from http://biz.yahoo.com/p/industries.html Washington State University (WSU) (2008). Financial Analysis Course, Chapter 8, Ratio Analysis Techniques PrinciplesofAccounting.com (2008). Chapter 16, Total Asset Turnover Ratio. Retrieved November 13, 2008 Income Statement For the 12 months ending September 30, 2005