Just to support my last post Central Petroleum Return On Equity...

Just to support my last post

Central Petroleum

Return On Equity  (-106.09) % compared to peer average of (1-5.88) %
Profit Margin (88.17) % compared to peer average of (5.73) %

Based on recorded statements Central Petroleum Ltd has Operating Margin of -41.27%. This is 19.24% higher than that of the Basic Materials sector, and 54.79% lower than that of Independent Oil and Gas industry, The Operating Margin for all stocks is 213.84% higher than the company.

A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.

	Column 1	Column 2	Column 3	Column 4
0	Central Petroleum	Column 1 0 P/B	=	MV Per Share  BV Per Share

|  = | 2.63 times[/table]

The company has Profit Margin (PM) of (88.17) % which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (41.27) % which suggests for every $100 dollars of sales it generated a net operating loss of -0.41.

Central Petroleum Ltd has return on total asset (ROA) of (5.17) % which means that it has lost $5.17 on every $100 spent on asset. This is way below average. Similarly, it shows return on equity (ROE) of (106.09) % meaning that it generated substantial loss on money invested by shareholders.
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However, with all above said which represents less than favourable performance indicators, central should now start to generate increased gas and oil sales revenue and hence, should start to reward investors in the not so distant future.

It is also assumed that Santos dark room has had a prod or two from central executives and any favourable deal making strategies could initiate a push forward sooner than latter.