Relative Risk vs. Return Landscape
If you would invest 419.00
in The Colonial Motor Company Limited on April 21, 2013
and sell it today you would earn a total of 15.00
from holding The Colonial Motor Company Limited or generate 3.58%
return on investment over 30
days. The Colonial Motor Company Limited is generating 0.28% of daily returns assuming 0.7% volatility of returns over the 30 days investment horizon. Simply put, 9% of all equities have less volatile historical return distribution than The Colonial Motor Company Limited and 84% of equity instruments are likely to generate higher returns than the company over the next 30 trading days.
Daily Expected Return (%)
Assuming 30 trading days horizon, The Colonial Motor Company Limited is expected to generate 1.11 times less return on investment than the market. In addition to that, the company is 1.27 times more volatile than its market benchmark. It trades about 0.4 of its total potential returns per unit of risk. The S&P 500 is currently generating roughly 0.56 per unit of volatility.
Colonial Operating Margin
Based on recorded statements The Colonial Motor Company Limited has Operating Margin of 3.48%. This is 205.45% lower than that of Services sector, and 24.29% higher than that of Auto Dealerships
industry, The Operating Margin for all stocks is 199.71% 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.
Colonial Return On Equity vs Return On Asset
The Colonial Motor Company Limited 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 0.42
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for The Colonial Motor Company Limited is roughly 2.36