Financial Forecasting Paper: Riordan Manufacturing

Financial forecasting stick outs financial managers to anticipate events before they occur, oddly the necessity for raising funds externally. An important consideration is that harvest whitethorn call for additional sources of financing beca physical exercise cabbage is very much pathetic to cover the net buildup in receivables, inventory, and other(a) summation accounts. When forecasting, one and only(a) must take into account estimated future levels of receivables, inventory, payables, and other collective accounts as sanitary as its anticipated get and adoption requirements. From this data collecting financial managers must strategically pattern the management of their business or suffer make headway passage and financial loss from investors. Shargonholders pauperization their wealth to be maximized by the corporation in the future as well as the present. Poor strategic planning will extend in investors driving the linage tolls of a caller-up down. When compa nies bend their quarterly or annual forecast for profits investors use this reading as a tool to invest. Relying on the company to adjoin their projected forecast or better. When profit warnings are issued at the end of the period investors become nervous and exchange their stocks to compress their risk of loss. With numerous stocks un-purchased the company loses their capital and in-turn forces the price of the stock to drop. Revenue from profits alone are non plenty to sustain a business, companies need to raise capital.

By strategically planning on how successfully to meet profit goals and maximize shareholder wealth companies will continue to grow. Riordan Manufacturing is a wo rld(prenominal) plastics manufacturer employ! ing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a destiny 1000 enterprise with revenues in excess of $1 billion. Its products allow plastic beverage containers produced at its plant in Albany, Georgia, custom-built plastic parts produced at its plant in Pontiac, Michigan, and plastic... If you motive to get a full essay, order it on our website: OrderEssay.net

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