Riordan Financial Ratios Bsa500
Running head: WEEK 5 Financial Ratios Analysis
Week 5 Financial Ratios Analysis
University of Phoenix
Business Systems I
BSA/500
This is a brief analysis and comparison of select financial ratios of four companies: two in the manufacturing and two in the retail food industries. The financial ratios analyzed are the current ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent financial reports provided for each company, although in some cases they may not represent the same years. All dollar figures are in thousands. Riordan Manufacturing, based in San Diego, California, is a leading manufacturer in the plastics injection molding industry. Riordan’s most recent financial reports are for the calendar year ending December 2005.
Current ratio: Current Assets / Current Liabilities: $14,555,092 / $6,974,094 = 2.0870
Debt ratio: Total Liabilities / Total Assets: $12,476,927 / $34,592,182 = .3606
Profit margin: Gross Profit / Total Revenue: $8,786,061 / $50,823,685 = .1728
ROA (Return on Assets): Net income / Total Assets: $1,956,371 / $35,592,182 = .0549
Ball Corporation (BLL), based in Broomfield, Colorado, is also a leading provider of consumer goods in the manufacturing industry. The financial reports are for the twelve month period ending December 2008. The Yahoo! Finance (2010) website was used to obtain the financial statements for the Ball Corporation.
Current Ratio: Current Assets / Current Liabilities: $2,165,300 / $1,862,400 = 1.162
Debt ratio: Total Liabilities / Total Assets: $5,282,900 / $6,368,700 = .829
Profit margin: Gross Profit / Total Revenue: $1,221,100 / 7,561,500 = .1614
ROA (Return on Assets): Net income / Total Assets: $319,500 / $6,368,700 = .0501
According to Yahoo! Finance (2010) on February 4, 2010, the Price/Earnings ratio for the Industry Center - Packaging and Container was 24.7.
Kudler Fine Foods is a specialty retail food store that is based
Week 5 Financial Ratios Analysis
University of Phoenix
Business Systems I
BSA/500
This is a brief analysis and comparison of select financial ratios of four companies: two in the manufacturing and two in the retail food industries. The financial ratios analyzed are the current ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent financial reports provided for each company, although in some cases they may not represent the same years. All dollar figures are in thousands. Riordan Manufacturing, based in San Diego, California, is a leading manufacturer in the plastics injection molding industry. Riordan’s most recent financial reports are for the calendar year ending December 2005.
Current ratio: Current Assets / Current Liabilities: $14,555,092 / $6,974,094 = 2.0870
Debt ratio: Total Liabilities / Total Assets: $12,476,927 / $34,592,182 = .3606
Profit margin: Gross Profit / Total Revenue: $8,786,061 / $50,823,685 = .1728
ROA (Return on Assets): Net income / Total Assets: $1,956,371 / $35,592,182 = .0549
Ball Corporation (BLL), based in Broomfield, Colorado, is also a leading provider of consumer goods in the manufacturing industry. The financial reports are for the twelve month period ending December 2008. The Yahoo! Finance (2010) website was used to obtain the financial statements for the Ball Corporation.
Current Ratio: Current Assets / Current Liabilities: $2,165,300 / $1,862,400 = 1.162
Debt ratio: Total Liabilities / Total Assets: $5,282,900 / $6,368,700 = .829
Profit margin: Gross Profit / Total Revenue: $1,221,100 / 7,561,500 = .1614
ROA (Return on Assets): Net income / Total Assets: $319,500 / $6,368,700 = .0501
According to Yahoo! Finance (2010) on February 4, 2010, the Price/Earnings ratio for the Industry Center - Packaging and Container was 24.7.
Kudler Fine Foods is a specialty retail food store that is based
References: Yahoo! Finance. (2010). Ball Corporation (BLL). Retrieved from http://finance.yahoo.com/q?s=BLL Yahoo! Finance Yahoo! Finance. (2010). Industry Center – Packaging & Containers. Retrieved from http://biz.yahoo.com/ic/325.html Yahoo! Finance For the 12 months ending September 30, 2005 | |