Summary of Riordan's financial status

Essay specific features

 

Issue:

Business

 

Written by:

Heather P

 

Date added:

June 29, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 919

 

Was viewed:

4660 times

 

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Essay content:

Riordan also has a very high inventory, which means that they are having difficulties selling products for profit. A huge chunk of its assets are also tied up to receivables--suggesting that the company may be having problems collecting payment. On a positive note, its current ratio is close to the ideal, which signals that Riordan's management is efficient in managing its cash flows...
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However, Riordan's quick ratio (which is a better indicator of a company's financial health) comes out as very low compared to acceptable standards. Its debt to equity ratio is also very high, further affirming that it relies too much on debt to finance its operations. As such, lending institutions may be less willing to lend financial assistance to the company...
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