Buy custom Summary of Riordan's financial status
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 919 |
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A positive figure means that the company is likely or has the ability to pay its dues on time (e.g. bills, payroll, loan payments).
Its current asset to liability ratio (current ratio) is approximately 2:1, which means that there are twice as many current assets as there are current liabilities.
The current ratio gives an idea of the company's ability to pay current, short-term obligations...
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A ratio of more than 1 suggests that it can pay most of its debts at that certain point in time. Riordan's current ratio is 2.09, and this suggests (in the least) that the company is efficient in operating its business cycle. The ability to effectively turn products into cash is a good sign of a company's financial state...
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