FirstCash Information Ratio
| FCFS Stock | | | USD 224.72 3.21 1.45% |
The Information Ratio measures excess return (alpha) per unit of tracking error relative to a benchmark. Unlike the Sharpe Ratio, which uses total volatility, the Information Ratio isolates only the variability of the alpha component — the return attributable to active decisions rather than passive market exposure. Below is FirstCash's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
At 0.2576, FirstCash's Information Ratio indicates positive but modest excess return per unit of tracking risk. FirstCash has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.2576 | |
Information Ratio Peers Comparison
Relative to peers, FirstCash's Information Ratio is above the group average of 0.01. Peer readings range from -0.0911 (SLM Corp) to 0.1164 (Voya Financial), reflecting wide dispersion across the sector. FirstCash's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Information Ratio Relative To Other Indicators
The chart below plots Information Ratio against Maximum Drawdown for FirstCash and its peers. Each point represents one equity — position along the horizontal axis shows Information Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Comparing Information Ratio (
0.26 ) to Maximum Drawdown (
9.69 ) for FirstCash yields a
37.62 multiple. This indicates Maximum Drawdown substantially exceeds Information Ratio for FirstCash.
Methodology, Assumptions & Data Sources
FirstCash's Information Ratio currently stands at 0.2576. The Information Ratio for FirstCash is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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