Riordan Financial Ratios Bsa500

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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 in San Diego, California. Kudler is a leading supplier of domestic and imported food specialties. Kudler’s most recent financial reports available are for the calendar year ending December 2003. Current Ratio: Current Assets / Current Liabilities: $1,971,000 / $116,290 = 16.95

Debt ratio: Total Liabilities / Total Assets: $746,900 / $2,675,250 = .279

Profit margin: Gross Profit / Total Revenue: $2,321,369 / $10,796,200 = .215

ROA (Return on Assets): Net income / Total Assets: $676,795 / $2,675,250 = .2529

Winn Dixie Stores, Inc (WINN) is headquartered in Jacksonville, Florida. Winn-Dixie Stores, Inc. has grocery stores throughout the Southeastern United States with stores in Alabama, Florida, Georgia, Louisiana, and Mississippi. The financial reports are for the twelve month period ending June 24, 2009. All dollar figures are in thousands. The Yahoo! Finance (2010) website was used to obtain the financial statements for Winn-Dixie Stores, Inc. Current Ratio: Current Assets / Current Liabilities: $954,341 / $659,205 = 1.4477

Debt ratio: Total Liabilities / Total Assets: $935,951 / $1,815,049 = .5156

Profit margin: Gross Profit / Total Revenue: $2,098,416 / $7,366,965 = .2848

ROA (Return on Assets): Net income / Total Assets: $38,789 / $1,815,049 = .0213

According to Yahoo! Finance on February 4, 2010, the Price/Earnings ratio for the Industry Center - Grocery Stores industry was 136.8.

References

Kudler Fine Foods. (2003). Finance & Accounting. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/Finance/KudlerFinance001A.htm Riordan Manufacturing. (2005). Finance & Accounting. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Finance/RioFandA001.htm Yahoo! Finance. (2010). Ball Corporation (BLL). Retrieved from http://finance.yahoo.com/q?s=BLL Yahoo! Finance. (2010). Industry Center – Grocery Stores. Retrieved from http://biz.yahoo.com/ic/734.html Yahoo! Finance....
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