Relative Risk vs. Return Landscape
If you would invest 6,415
in Stryker Corporation on April 19, 2013
and sell it today you would earn a total of 475.00
from holding Stryker Corporation or generate 7.4%
return on investment over 30
days. Stryker Corporation is generating 0.3% of daily returns assuming volatility of 0.74%
on return distribution over 30 days investment horizon. In other words, 9% of equities are less volatile than the company and above 83% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, Stryker Corporation is expected to generate 1.1 times less return on investment than the market. In addition to that, the company is 1.35 times more volatile than its market benchmark. It trades about 0.41 of its total potential returns per unit of risk. The S&P 500 is currently generating roughly 0.6 per unit of volatility.
Stryker Operating Margin
Based on recorded statements Stryker Corporation has Operating Margin of 21.76%. This is 182.33% lower than that of Healthcare sector, and 140.99% lower than that of Medical Appliances and Equipment
industry, The Operating Margin for all stocks is 736.26% 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.
Stryker Return On Equity vs Return On Asset
Stryker Corporation 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 0.58
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Stryker Corporation is roughly 1.72