Share Price Performance of Slater and Gordon Limited

Question: Discuss about the Share Price Performance of Slater and Gordon Limited. Answer: The share prices of the companies show the performance of the companies in the market. The share price of the companies increases with the increase in the quality of products and services. The Slater and Gordon Limited is a company of Australia which is engaged primarily in operating the legal practices in the United Kingdom and Australia (Alexander, Nobes and Ullathorne, 2016). The organization in three segments: Slater and Gordon UK, Slater and Gordon Australia and Stater Gordon Solutions. The AUS segment of the company conducts the legal services and practices with the Australia. The SGS segment provides complementary services in motor and health services. The SGS UK provides a range of general legal law services and personal injury in the United Kingdom. Thus, the services of the company include the personal legal services, specialized and business litigation services and claims include assessment, origination, and resolution of the injury claims. The share price performance over the last five years will be determined and analyzed that will show the performance of the company (Appannaiah, Reddy and Putty, 2010). Date Adj Close 01-01-2012 1.61716 08-01-2012 1.68747 15-01-2012 1.64997 22-01-2012 1.65934 29-01-2012 1.6406 05-02-2012 1.81872 12-02-2012 1.48122 19-02-2012 1.53278 26-02-2012 1.50935 04-03-2012 1.44372 11-03-2012 1.49529 18-03-2012 1.4531 25-03-2012 1.3781 01-04-2012 1.43904 08-04-2012 1.48591 15-04-2012 1.60778 22-04-2012 1.59372 29-04-2012 1.68747 06-05-2012 1.6406 13-05-2012 1.55153 20-05-2012 1.59372 27-05-2012 1.59372 03-06-2012 1.68747 10-06-2012 1.77653 17-06-2012 1.69684 24-06-2012 1.73434 01-07-2012 1.78122 08-07-2012 1.81872 15-07-2012 1.83278 22-07-2012 1.77184 29-07-2012 1.81872 05-08-2012 1.80934 12-08-2012 1.77653 19-08-2012 1.80934 26-08-2012 1.71559 02-09-2012 1.80934 09-09-2012 1.79528 16-09-2012 1.78122 23-09-2012 1.78122 30-09-2012 1.78122 07-10-2012 1.83747 14-10-2012 1.84684 21-10-2012 1.82809 28-10-2012 1.86559 04-11-2012 1.87028 11-11-2012 1.78122 18-11-2012 1.88434 25-11-2012 1.87497 02-12-2012 1.84215 09-12-2012 1.85622 16-12-2012 1.96871 23-12-2012 1.97809 30-12-2012 2.06246 06-01-2013 2.08121 13-01-2013 2.07184 20-01-2013 2.01559 27-01-2013 2.04371 03-02-2013 2.07184 10-02-2013 2.15621 17-02-2013 2.20309 24-02-2013 2.48433 03-03-2013 2.61558 10-03-2013 2.50308 17-03-2013 2.39058 24-03-2013 2.42808 31-03-2013 2.47496 07-04-2013 2.45621 14-04-2013 2.48433 21-04-2013 2.44683 28-04-2013 2.5312 05-05-2013 2.6062 12-05-2013 2.85932 19-05-2013 2.80307 26-05-2013 2.7187 02-06-2013 2.62495 09-06-2013 2.55933 16-06-2013 2.50308 23-06-2013 2.6062 30-06-2013 3.00932 07-07-2013 3.04682 14-07-2013 2.84995 21-07-2013 2.93432 28-07-2013 2.9062 04-08-2013 2.84057 11-08-2013 2.8687 18-08-2013 3.28119 25-08-2013 3.15932 01-09-2013 3.44994 08-09-2013 3.37494 15-09-2013 3.45931 22-09-2013 3.52494 29-09-2013 3.53431 06-10-2013 3.61868 13-10-2013 3.68431 20-10-2013 3.55306 27-10-2013 3.69368 03-11-2013 3.84368 10-11-2013 3.8718 17-11-2013 3.85306 24-11-2013 4.12493 01-12-2013 4.15305 08-12-2013 4.10618 15-12-2013 4.06868 22-12-2013 4.3218 29-12-2013 4.42492 05-01-2014 4.37805 12-01-2014 4.23742 19-01-2014 4.21867 26-01-2014 4.12493 02-02-2014 4.15305 09-02-2014 4.21867 16-02-2014 4.49054 23-02-2014 4.57492 02-03-2014 4.49054 09-03-2014 4.29367 16-03-2014 4.30305 23-03-2014 4.22805 30-03-2014 4.15305 06-04-2014 4.19055 13-04-2014 4.22805 20-04-2014 4.33117 27-04-2014 4.2468 04-05-2014 4.31242 11-05-2014 4.51867 18-05-2014 4.49992 25-05-2014 4.68742 01-06-2014 4.69679 08-06-2014 4.62179 15-06-2014 4.77179 22-06-2014 4.85616 29-06-2014 4.98741 06-07-2014 4.88429 13-07-2014 4.79991 20-07-2014 4.86554 27-07-2014 4.64054 03-08-2014 4.55617 10-08-2014 5.39053 17-08-2014 5.67177 24-08-2014 5.88739 31-08-2014 5.84052 07-09-2014 5.76552 14-09-2014 5.7749 21-09-2014 5.74677 28-09-2014 5.65302 05-10-2014 5.54052 12-10-2014 5.50303 19-10-2014 5.79364 26-10-2014 5.72802 02-11-2014 5.92489 09-11-2014 5.99052 16-11-2014 5.63427 23-11-2014 5.78427 30-11-2014 5.85927 07-12-2014 5.85927 14-12-2014 5.80302 21-12-2014 6.04677 28-12-2014 5.99989 04-01-2015 6.11239 11-01-2015 5.80302 18-01-2015 6.01864 25-01-2015 6.22489 01-02-2015 6.18739 08-02-2015 7.21862 15-02-2015 6.93737 22-02-2015 7.02175 01-03-2015 6.853 08-03-2015 7.04987 15-03-2015 7.18112 22-03-2015 7.078 29-03-2015 7.85 05-04-2015 7.29 12-04-2015 6.87 19-04-2015 6.58 26-04-2015 6.32 03-05-2015 5.96 10-05-2015 6.18 17-05-2015 6.22 24-05-2015 6.03 31-05-2015 6.25 07-06-2015 6.29 14-06-2015 6.27 21-06-2015 5.04 28-06-2015 3.83 05-07-2015 3.39 12-07-2015 3.87 19-07-2015 3.6 26-07-2015 3.42 02-08-2015 3.27 09-08-2015 3.13 16-08-2015 3.05 23-08-2015 3.12 30-08-2015 2.8 06-09-2015 2.76 13-09-2015 2.9 20-09-2015 2.67 27-09-2015 2.95 04-10-2015 3.01 11-10-2015 2.88 18-10-2015 2.92 25-10-2015 2.77 01-11-2015 2.59 08-11-2015 2.64 15-11-2015 2.68 22-11-2015 0.69 29-11-2015 1.13 06-12-2015 1 13-12-2015 0.83 20-12-2015 0.895 27-12-2015 0.825 03-01-2016 0.69 10-01-2016 0.63 17-01-2016 0.59 24-01-2016 0.6 31-01-2016 0.59 07-02-2016 0.61 14-02-2016 0.685 21-02-2016 0.83 28-02-2016 0.37 06-03-2016 0.345 13-03-2016 0.275 20-03-2016 0.25 27-03-2016 0.265 03-04-2016 0.245 10-04-2016 0.275 17-04-2016 0.265 24-04-2016 0.295 01-05-2016 0.46 08-05-2016 0.385 15-05-2016 0.46 22-05-2016 0.49 29-05-2016 0.455 05-06-2016 0.43 12-06-2016 0.385 19-06-2016 0.375 26-06-2016 0.41 03-07-2016 0.395 10-07-2016 0.4 17-07-2016 0.395 24-07-2016 0.405 31-07-2016 0.42 07-08-2016 0.49 14-08-2016 0.5 21-08-2016 0.53 28-08-2016 0.42 04-09-2016 0.42 11-09-2016 0.4 18-09-2016 0.385 25-09-2016 0.375 02-10-2016 0.4 09-10-2016 0.385 16-10-2016 0.38 23-10-2016 0.36 30-10-2016 0.35 06-11-2016 0.32 13-11-2016 0.305 20-11-2016 0.33 27-11-2016 0.315 04-12-2016 0.28 11-12-2016 0.275 18-12-2016 0.23 25-12-2016 0.225 Source: (Share Prices, 2017) Source: (Financial Times, 2017) The share price performance of the Slater and Gordon Limited Company over the last five years has been depicted above. The graph clearly shows that the share price of the company has been decreasing over the period. The share price of the company was high in the first half of the year 2015. The share prices have been decreasing from the year 2015 which shows a decrease in the performance of the company (Powers and Needles, 2012). In the year 201 and 2017, the share price of the company has been declined. The profitability of the company has also been decreased from the year 2015. The management team was not appropriate managed the business operations of the company. The gross profit margin has been decreased in the year 2016 which means the production cost was increased. The net income of the company shows a negative result in the year 2016. The fall in the performance leads to the decrease the performance of the company. The investors invest into the company after determining and ev aluating the profit margin of the company (Britton and Waterston, 2013). The debt-equity ratio shows the debt level of the company and the debt equity ratio of Slater and Gordon Limited Company has increased from 0.5 in the year 2015 to 2.5 in the year 2016. Thus, it shows an increase in the level of debt. The decrease in the profitability and increase in the debts are the major reason for the failure of the company. References Alexander, D., Nobes, C. and Ullathorne, A. (2016).Financial accounting. Harlow, England: Pearson. Appannaiah, H., Reddy, P. and Putty, R. (2010).Financial accounting. Mumbai [India]: Himalaya Pub. House. Britton, A. and Waterston, C. (2013).Financial accounting. Harlow: Financial Times Prentice Hall. Financial Times (2017).Slater Gordon Ltd, SGH:ASX summary - FT.com. [online] Markets.ft.com. Available at: https://markets.ft.com/data/equities/tearsheet/summary?s=SGH:ASX [Accessed 8 May 2017]. Powers, M. and Needles, B. (2012).Financial accounting. [Mason]: South-Western, Cengage Learning. Share Prices (2017).SGH.AX Historical prices | SLATER G FPO Stock - Yahoo Finance. [online] Au.finance.yahoo.com. Available at: https://au.finance.yahoo.com/quote/SGH.AX/history?period1=1325356200period2=1483122600interval=1wkfilter=historyfrequency=1wk [Accessed 8 May 2017].