Your bank has been approached by the CFO of Universal Electronic (NASDAQ: UEIC) who is looking to obtain financing for a new product being developed. Universal Electronics is the global leader in universal control and sensing technologies for the smart home. The loan would be used to retrofit an existing facility and they are seeking a secured loan for 7 million (80% of the project cost).   While performing a leverage ratio analysis is a standard risk assessment procedure, you are also interested in their profitability, liquidity and growth since the loan has a high loan-to-value ratio.

To complete your analysis, need to calculate the ratios listed for the primary company (Universal Electronic), competitor (ADT) and industry average (Commercial Services and Supplies). Once you have calculated and reviewed the data, make a risk factor determination for each ratio.

Risk factors are graded from 1 to 3. 1= low risk; 2=medium risk; 3=high risk

You can use Yahoo finance as it provides income statement and balance sheet data. Both Universal Electronics and ADT are in the Commercial Services and Supplies industry.