engineering cost analysis

Allied Motion Technologies, Inc.
Financial Analysis Project

Table of Contents

1.Executive Summary……………………………….......………………………………3
2. Problem Statement...……………………………………………………………………4
3. Company Overview…………………………………..……………………………5
4. Trend Analysis
4.1 Trend Analysis of Balance Sheet…………………………….……………………7
4.2 Trend Analysis of Income Statement………………………………….……………9
4.3 Trend Analysis of Cash Flow…………………………………………………………10
5. Common-size Analysis
5.1 Common-size Analysis of Balance Sheet……………………………….……..…11
5.2 Common-size Analysis of Income Statement……………………………………13
6. Analysis of Cash and Liquidity
6.1 Current Ratio……………………………………………………………………………14
6.2 Quick Ratio…………………………………………………..………………………….17
7. Analysis of Capitalization
7.1 Total Debt to Owner’s Equity Ratio………………………...…………19
7.2 Total Debt to Total Asset Ratio……………………………………………………20
7.3 Long-Term Debt to Total Capitalization Ratio…………………………………22
7.4 Times Interest Earned Ratio………………………………………………23
8. Analysis of Operations
8.1 Gross Profit Margin……………………………………………………………….25
8.2 Operating Profit Margin………………………………………………………27
8.3 Return on Sales……………………………………………………………..……28
8.4 Return on Asset………………………………………………………….......29
9. Conclusions And Recommendations on Investment Potential…30
10. Appendix……………………………..………………..32
1. Executive Summary
The purpose of this project is to analyze the financial statements of Allied Motion Technologies, Inc. in order to make recommendations for investment potentials with the company. The paper begins through a discussion of the company’s history from its transition of Hathaway Corporation and Hathaway Instruments to Allied Motion Technologies, Inc. The transition period marked a significant growth in motion controlled products that became the main driving force of the company’s strength both nationally and internationally. Reviews of the products offered are discussed along with an