Memorandom

Running Head : Memorandum

Memorandum Name

Professor

Subject

School Introduction

Every industry has different ups and downs . When it comes to financial obligations , all industries are more sensitive and act upon the needs of everything because this is what business is all about . However , there are always instances of decline from one year to another . This is because the production , debt , and other factors arise with various problems . Riordan Manufacturing Incorporated and Kudler Fine Foods are some of these companies . These also have strengths and weaknesses that

could only be detected in yearly basis as a process of development and report . Therefore , in this , we could be able to identify the different factors that occur within these two companies when it comes to financial stability such as the current ration , debt ratio , profit ratio , ROA , and average

/E for grocery industry

Body

According to research , the year 2004 and 2005 of Riordan Manufacturing was the most significant year to discuss and analyze because there are cases of increase and decrease between the two years . On the other hand the most significant year for Kudler Fine Foods was in 2003 . That is why as a major example of the status of the industry , here are the data

According to the data , the current ratio of Riordan Manufacturing Incorporated decrease by .34 . It is a big instability to the company because it could not maintain its level . Statistics show that the current ratio of the company was 2 .43 in 2004 but it decrease to 2 .09 in 2005 . It shows that the current ratio of the company was not consistent or is not progressing as based on the numbers . Meanwhile , the Kudler Fine Foods has a 2003

Along with the decrease of current ratio was the increase of debt ratio of the company . It shows significant effects of financial stabilities and inconsistency . According to statistics , the debt ratio of the company increased by .2 from the year 2004 to 2005 . The debt ratio of 2004 was 35 .9 while in 2005 was 36 .1 . This percentage shows that even if the debt increase for only .2 , it is a signification of different problems that occurred in the company because they could not able to reimburse all the materials that they used and still need to loan or use their debts as resources . On the other hand , he Kudler Fine Foods has a

Because of the problem in current and debt ratio , the profit margin also decreases . According to statistics , the profit margin of the company in 2004 was 4 .3 and decreases to 5 .6 in 2005 . It shows that because of financial conflicts , the profit margin becomes lesser and inaccurate . It shows inconsistency of sales that exists from 2004 to 2005 . The Kudler Fine Foods has a in year 2003

If one aspect of the company decreases or fails to consistency , all other aspects will be affected like the ROA . It shows that in 2004 , the ROA was 5...