Relative Risk vs. Return Landscape
If you would invest 3,816
in Imperial Oil Ltd on April 22, 2013
and sell it today you would earn a total of 116.00
from holding Imperial Oil Ltd or generate 3.04%
return on investment over 30
days. Imperial Oil Ltd is generating 0.75% of daily returns assuming volatility of 1.3%
on return distribution over 30 days investment horizon. In other words, 17% of equities are less volatile than the company and above 57% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, Imperial Oil Ltd is expected to generate 2.41 times more return on investment than the market. However, the company is 2.41 times more volatile than its market benchmark. It trades about 0.58 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.56 per unit of risk.
Imperial Operating Margin
Based on recorded statements Imperial Oil Ltd has Operating Margin of 16.35%. This is 202.7% lower than that of Basic Materials sector, and 216.25% higher than that of Oil and Gas Refining and Marketing
industry, The Operating Margin for all stocks is 568.48% 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.
Imperial Return On Equity vs Return On Asset
Imperial Oil Ltd is rated fourth
overall in return on equity category among related companies. It is rated fourth
overall in return on asset category among related companies reporting about 0.44
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Imperial Oil Ltd is roughly 2.29