Riordan
Riordan Manufacturing is a multi-billion dollar corporation founded in 1991 offering a myriad of products both internationally and in the United States. The corporation has done an effective job of providing plastics to automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacture. Riordan is a Fortune 1000 company whose annual revenue is over $1 billion. Currently the company has 550 employees. Its annual earning is about $46 million. Riordan's revenues were $50,823,685 in fiscal year 2005 and $ 46,044,288 in fiscal year 2004 generated by sales.
The balance sheet and income statement are essential in starting to point out successful measures in financial management for Riordan Manufacturing. Ratio analysis is vital in strategizing methods that will help ensure the viability and over all stability of an organization. Riordan ratio and financial analysis enables us to gain insight on the corporations. Business performance can be enhanced has been steady and increasing in the last 2 years. The current ratio for the business is 2.08 well with in the average. In the fiscal year of 2005, balance sheet showed that 54% of its current assets came from inventory. The Riordan spent about $26 million over 2005 on the stock, which translated to the purchase of about 100,000 shares. Riordan had about 15 million outstanding shares as of years report. The ROA is 5.66%. this is low compared with effectively financing a corporation. Riordan profit before interest tax decreased from 2004 to 2005. Riordan's ROE was 8.9% in 2005, this clearly shows that Riordan is not efficiently handling its assets. A good financial system could great increase the efficiency of the organization. Riordan's main assets came from inventory this shows that there is a clear problem with mismanagement of financing.
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