engineering cost analysis

Topics: Asset, Balance sheet, Generally Accepted Accounting Principles Pages: 33 (5196 words) Published: June 4, 2014

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 explanation of their various market niches specifically: medical, aerospace and defense.

The company’s finances are discussed on a personal level for the year 2013, as well as the market capitalization in comparison to their competitors of Hon Hai Precision, Corning Inc. and Mitsubishi Electric Corp. Allied Motion Technology holds an $111,000,000 market capitalization as well as the reign amongst the competitors listed.

Various charts and graphs dictate the following: trend analysis, common size analysis, current ratio, quick ratio and analysis of capitalization. The following report shows a detailed examination of the company’s statistical results through the FY of 2008-2012. The project has been performed for the purpose of providing clients with long-term outlooks by determining the following information: Allied Motion Technologies, Inc’s performance, productivity, liquidity and market capitalization

At the conclusion of the report the following information was gathered. In studying the liquidity and cash of the company, the current ratio improved in 2009 but declined in 2010. Nonetheless, the significant increased monitored in 2011 provides proof that the company is able to stabilize itself as well as cover its short-term responsibilities. Furthermore, the company’s debt was reduced during the FY of 2011-2012 at noted through the capitalization analysis, portraying the company as strategic and responsible company to invest in. As the company’s debt was noted to have decreased, it was also noted that the gross profit margin improved even with the decline in 2009. Adjustments after 2009’s decline resulted in decreased operating costs and increased operating profits. Thus, the final analysis shows the improvement in the returns, rise in assets and favor within market conditions.

2. Problem Statement
In this project, we analyzed the financial statements of Allied Motion Technologies, Inc. to make recommendations to decision makers to determine the investment...
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