Finance: Stock Price Performance, Ratio Analysis, Leverage Ratio, Activity Ratio, Profitability Ratio, SWOT Analysis

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

FINANCE1
Table of Contents
Stock Price Performance..................................................................................................................2
Ratio Analysis..................................................................................................................................2
Leverage Ratio.............................................................................................................................4
Activity Ratio...............................................................................................................................5
Profitability Ratio........................................................................................................................7
Summary of Financial Strengths and Weakness.........................................................................9
SWOT Analysis.........................................................................................................................10
References......................................................................................................................................11

FINANCE2
Stock Price Performance
In order to analyse the stock price performance of the Universal Electronics Inc. the share
price data for the company for the period of two years have been taken into consideration. The
trend period taken into consideration for the stock has been from the period of September 2017-
September 2019. The stock price performance of the company will be well judged based on the
risk return analysis whereby the above factors would be taken into consideration for the purpose
of investment analysis. The return for the stock in the trend period has been around -0.24% and
the associated risk that was well captured with the help of the standard deviation formula for the
stock. The stock price performance for the company has been primarily affected due to the
changes in the macro-economic variables/factors and business factors that were the key reason
behind the changes and volatility in the stock price performance of the company.
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
Stock Price Analysis

FINANCE3
Ratio Analysis
Liquidity Ratio
The liquidity ratio for the company indicates the coverage of the current/liquid assets
with respect to the current liabilities of the company (Robinson et al., 2015).
Current Ratio (Current Assets/Current Liabilities): The current ratio for the Universal
Company has been around 1.5 times in the year 2015 and the same has increased considerably
for the company to around 1.4 times in the year 2018. On the other hand, the Current Ratio for
Semtech Company has been around 3.3 times in the year 2015 and the same has increased
considerably for the company to around 3.7 times. The coverage of the current assets is
considerably too high for the company whereby the company is keeping high amount of
coverage for current assets which might be affecting the company in the form of opportunity cost
for the company.
2016 2017 2018
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Current Ratio
Times Per Year
Quick Ratio ((Current Assets-Inventory)/Current Liabilities): The quick ratio for the
Universal Company has been around 0.9 times in the year 2016 and the same has decreased