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Standard Motor Products Annual Report

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Standard Motor Products Annual Report: Year Ending December 31, 2014 Standard Motors Products is a leading manufacturer and distributor of replacement parts for motor vehicles in the automotive industry. They focus on heavy duty, industrial equipment and the original equipment service market. As a curious investor, it is important to look at the company as a whole before deciding if an investment is a good choice. First, we must analyze the balance sheet and income statement by addressing trends through vertical and horizontal analysis. Another great way to analyze the data given in the financial statements is to calculate ratios that express activity, liquidity, financial leverage and profitability. Further, after addressing all the analysis, looking at the stock trends give an investor a full picture of the company’s standing. In this paper, I will address the analysis stated above and determine if investing in Standard Motor Products is a good idea at this point. To begin, there needs to be an understanding of the company. Investors need to be aware of what their money is going into to assure they are comfortable with the risk and reward of the investment. Standard Motor Products is a replacement part manufacturer that is split into two segments of business. Each segment focuses on a different line of replacement parts. The first segment, engine management segment, manufactures parts for ignition and emission, ignition wires, battery cables, fuel system parts and

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