Two impressive factoids about BHP’s FY2009* results:
• Despite a 16% drop in revenue relative to FY2008, cash flow increased by 6% year-over-year due to cost-cutting and better utilization of working capital.
• The EBIT‡ margin was 41%, highest of any major company in the mining industry.
*Fiscal year ends on June 30. ‡Earnings before interest and taxes.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”