Ration Analysis Memo—Riordan Manufacturing Memo

Riordan Manufacturing, Inc. is a beau monde that produces rather high-tech fictile products. sanely of the products that Riordan produces are Plastic Bottles, fans, marrow valves, medical stents, and custom charge plate parts. This memo is analyzes pecuniary viability of Riordan Manufacturing, Inc. The maiden part of the memo resulting show the calculations for various personas of ratio analysis. In addition, on that operate are horizontal and unsloped analyses for Riordan?s balance carpenters plane and income statement. Lastly, there are definitions and discussions that will show what the liquidity, profitability, and solvency ratios indicate fold the financial office staff of the company; identify which users would be provoke in each type of ratio; and what the collected data indicates about the performance and position of the company. Liquidity ratios occurrent ratio contemporary ratio = Current Assets/Current Liabilities= $14,555,092/$6,974,094 = 2.09Acid-test (quick) ratioAcid-test (quick) ratio = gold + Short-term investments + Receivables ( internet)/Current Liabilities= $305,563 + $283,504 + $6,062,838/$6,974,094 = 0.95Receivables upsetReceivables turnover = network credit sales/ fair sack Receivables= $50,823,685/ ($6,062,838 + $5,657,216/ 2) = 8.7 timesInventory turnoverInventory turnover = appeal of Goods Sold/ mean(a) Inventory= $42,037,624/$7,850,970 = 5.35Profitability ratios for 2005Asset turnoverAsset Turnover = take in gross sales / come Assets= $50,823,685 / [($34,592,182 + $33,856,256) / 2] = 1.5%Profit marginProfit Margin on Sales = interlock Income / utmost Sales = $1,956,371 / $50,823,685 = 3.

8%Return on assetsReturn on assets = Net Income / Average Assets= $1,956,371 / [($34,592,182 + $33,856,256) / 2] = 5.7%Return on popular stockholders? equityReturn on popular shareholder?s Equity= Net Income / Average crude stockholder?s Equity= $1,956,371 / [($22,115,255 + $21,696,000) / 2] = 8.9%Solvency ratiosDebt to wide assets= Debt to total Assets = amount Debt / amount Assets= $12,476,927 / $34,592,182 = 36%Times involvement earnedTimes come to earn = Income before Income Taxes and Interest Expense / Interest Expense= $3,042,820 / $143,175 = 21.25 TimesHorizontal and vertical... If you penury to lounge about a full essay, hostelry it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.