Company vs. Industry Financial Analysis

Companies constantly evaluate their performance by comparing it with its constancy competitors and with other successful businesses from other industries. To do that there be many symmetrys out there that makes the comparison some(prenominal) easier. relative degree symmetry synopsis helps to identify their companys strengths and weaknesses and evaluate its financial position. thither are different ratios that are used and those are income, valueability, liquidity, works capital, long landmark analysis, coverage and leverage. Riordan Manufacturing and Kudler Fine Foods analysis go out show comparison to its manufacture electric current ratio, debt ratio and emolument mete. Current ratios consists of current assets which is cash on had and current liabilities which is sententious financial obligations such as accounts payable and notes payable. Riordan current ratio is 2.09 and its industry ratios is 2.04. Its current ratio is to a higher place industry average which delegacy that Riordan is able to meet short term obligations or indulge short term creditors. Debt ratio streaks a firms total assets that are financed with creditors funds. It includes all short term liabilities and long term borrowings. Riordan debt ratio is 86%. The ratio is interpreted to mean that Riordan creditors are finance 86% of the firms total asset. This is much higher than the 64.40% industry average. This indicated that Riordan is apply more debt to finance feat than the average firm in the industry.

The company may draw difficulties obtaining backing for further asset additions. If Riord an wants to restore its borrowing power it ! should take steps to amplify its equity base. Profitability ratios measure how effectively firm is generating profits on sale, total assets and stockholders investment. This in addition demonstrates how well its management is making investments and financing decisions. It consists of unprocessed profit margin and net profit margin. Riordan gross profit margin is 17%. It shows that... If you want to get a full essay, revise it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper