Relative Risk vs. Return Landscape
If you would invest 2,395
in Yahoo! Inc on April 19, 2013
and sell it today you would earn a total of 257.00
from holding Yahoo! Inc or generate 10.73%
return on investment over 30
days. Yahoo! Inc is currenly generating 0.6% of daily expected returns and assumes 1.75% risk (volatility on return distribution) over the 30 days horizon. In different words, 23% of equities are less volatile than Yahoo! Inc and 65% of traded equity instruments are projected to make higher returns than the company over the 30 days investment horizon.
Daily Expected Return (%)
Given investment horizon of 30 days, Yahoo! Inc is expected to generate 3.18 times more return on investment than the market. However, the company is 3.18 times more volatile than its market benchmark. It trades about 0.34 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.6 per unit of risk.
Yahoo Operating Margin
Based on recorded statements Yahoo! Inc has Operating Margin of 16.44%. This is 193.41% lower than that of Technology sector, and 148.65% lower than that of Internet Information Providers
industry, The Operating Margin for all stocks is 580.7% 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.
Yahoo Return On Equity vs Return On Asset
Yahoo! Inc is rated fifth
in return on equity category among related companies. It is rated below average
in return on asset category among related companies reporting about 0.11
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Yahoo! Inc is roughly 9.37