Relative Risk vs. Return Landscape
If you would invest 2,230
in Avon Products Inc on April 20, 2013
and sell it today you would earn a total of 172.00
from holding Avon Products Inc or generate 7.71%
return on investment over 30
days. Avon Products Inc is generating 0.45% of daily returns assuming volatility of 1.36%
on return distribution over 30 days investment horizon. In other words, 17% of equities are less volatile than the company and above 74% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, Avon Products Inc is expected to generate 2.43 times more return on investment than the market. However, the company is 2.43 times more volatile than its market benchmark. It trades about 0.33 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.59 per unit of risk.
Avon Operating Margin
Based on recorded statements Avon Products Inc has Operating Margin of 7.21%. This is 2225.81% higher than that of Consumer Goods sector, and 191.15% lower than that of Personal Products
industry, The Operating Margin for all stocks is 306.59% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Avon Return On Equity vs Return On Asset
Avon Products Inc is rated below average
in return on equity category among related companies. It is rated below average
in return on asset category among related companies .