Relative Risk vs. Return Landscape
If you would invest 4,241
in CIT Group Inc on April 24, 2013
and sell it today you would earn a total of 224.00
from holding CIT Group Inc or generate 5.28%
return on investment over 30
days. CIT Group Inc is generating 0.21% of daily returns assuming volatility of 0.86%
on return distribution over 30 days investment horizon. In other words, 11% of equities are less volatile than the company and above 88% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, CIT Group Inc is expected to generate 1.51 times more return on investment than the market. However, the company is 1.51 times more volatile than its market benchmark. It trades about 0.24 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.35 per unit of risk.
CIT Group Operating Margin
Based on recorded statements CIT Group Inc has Operating Margin of 16.67%. This is 26.98% lower than that of Financial sector, and 178.3% higher than that of Credit Services
industry, The Operating Margin for all stocks is 565.64% 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.
CIT Group Return On Equity vs Return On Asset
CIT Group 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 reporting about 0.25
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for CIT Group Inc is roughly 4.00