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Riordan Manufacturing Case Study

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Riordan Manufacturing Case Study
In the finding of the liquidity, profitability and the solvency ratios regarding the Riordan Manufacturing Inc, it has revealed that the company is able to pay its debts to the creditors and investors. The liquidity ratio is good for our investors, creditors and bankers so that they can see that we can pay off our debts. With the profitability ratio, it comes in handy for the company when trying to find out if we have made any profit for the year or it we have lost money. With using the profitability ratio that accounting team has found a profit margin of 4.29% in 2010, and it went up in 2011 to 4.97%, which is great for the company’s profits. Then we have the solvency ratios that benefit long term creditors and shareholders and give them information

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