VM Demand vs Entitlement

Greetings!

vSphere 5.5

VM: Server 2012 R2

Cores: 2:2

Here's my question: The inserted image chart shows that this VM's demand is far higher than entitlement. Is this Ok?

I don't quite understand the relationship between the two metrics. We're reviewing this VM for performance issues. My naive understanding is that the level of demand is what the VM is asking for at times and the entitlement is what it could receive no matter what.

Is there a better metric to compare this to? Should I be concerned about this?

Thanks in advance!