In 2007 Current ratio decrease to 6.160 but it is favorable as compared to industry average. In 2008 it is cut near to half to 3.686 but greater then Industry average. So we consider this change as good.
Although in 2006-07 decrease from 54.34% to 47.56% due to increase in exploration and evaluation that increase by 149.52% and increase in asset 5.72% EBIT decrease but compare with industry average it is high. In 2007-08 EBIT improve by 36% due to increase in other income by 129.28% so overall EBIT is improved. That is also above industry average.
In 2006-07 ROE decrease from 1.069 to 1.061 due to decrease in net income .73% but if we compare with industry average this ratio is below. In 2007-08 return on equity increase 1.061 to 1.154 due to other income increase 129.82% and exploration and prospecting cost decrease 10.71% .Although ratio improve but this is again below from industry average.
In 2006-07 gross profit margin increase from 68.435% to 69.62% due to increase expenses by 54.88% so the gross profit increase 5.41% comparing this with industry average 50.68% this ratio is better than industry average. In 2007-08 Gross profit margin improve from 69.62% to 70.01% reason is increase in sale by 25.12%, on the other hand expenses increase by 23.49% this again high from industry average that is 50.89%.
In 2006-07 net profit margin was 45.51%,asset turnover 0.7752 and equity multiplier was 3.0072 so ROE ratio was 1.061 comparing this with industry average that is 0.466 this ratio is good. In 2007-08 net profit margin is 39.55%, asset turnover 0.8331 and equity multiplier was 3.5008 so ROE ratio was 1.154 comparing this with industry average that is 0.712 this ratio is good