Business Review of Yourmon
Business Review of Yourmon
On the surface, Riordan Manufacturings balance sheet reveals a profitable company with an excellent equity for its stockholders. However, an in-depth analysis reveals some possible concerns with its long term financial health. Over the past three years, Riordan has been relatively stagnant despite consistent investment in a joint venture in the Peoples Republic of China. In addition, the company continues to carry a significant long term debt without a noticeable attempt to lessen that debt.
Riordan also exhibits possible concerns with its accounts receivables and inventory levels. The company has a receivable turn of 8.67, meaning that it takes and average of 42 days for its customer to pay on its bills. While this falls slightly higher than the industry average of 7.2, it falls far short of the industry leader with a turn rate of 13.12 (Reuters). Perhaps of more concern is the companys inventory turnover rate. Riordan Manufacturing holds a