Herfy: Reviews on return on equity

The average return on equity declined slightly from 26.75 to 26.37 percent, mainly on the impacts of the decrease in return on net operating assets(RNOA) from 20.73 to 20.39 percent affected by the decrease in Net operating assets turnover(NOAT). As to the second component of the equation i.e. Net non-operating activities, its contribution remains round the same average of the versus period with very slight decrease to 5.98 percent.
The company`s Net operating profit margin(NOPM) that measures the efficiency of profitability advanced from 18.79 to 19.23 percent in the last TTM, mainly supported by the growth in net operating profit after tax(NOPAT) with regard to the versus period. Thus, for each riyal of sales the company earns about 0.19 riyal after all operating expenses and tax.

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