Also, on TTM basis the company`s net income declined by 27.87 percent on the last twelve months ended 30 June 2017, realizing 645,79 million riyals "4.22 riyal per share" as compared to the versus period of 895,304 million riyals. Revenues declined by 29.10 percent to 1,338,24 million riyals. Operating income fell to 669,02 million riyals by 32.41 percent. The main point is that, the company`s ROE witnessed a decrease from 31.08 to 23.18 percent through the last twelve months.
The average return on equity decreased from 31.08 to 23.18 percent, such decrease is explained by the reduction in return on net operating assets(RNOA) from 26.51 to 21.08 percent which is mainly attributed to the drop in net operating asset turnover(NOAT). In addition, the non-operating activity witnessed a decline from 4.57 to 2.10 percent. As a result of the decrease in both, operating spread and financial leverage.
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The average return on equity decreased from 31.08 to 23.18 percent, such decrease is explained by the reduction in return on net operating assets(RNOA) from 26.51 to 21.08 percent which is mainly attributed to the drop in net operating asset turnover(NOAT). In addition, the non-operating activity witnessed a decline from 4.57 to 2.10 percent. As a result of the decrease in both, operating spread and financial leverage.
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Saudi Cement: The impacts of RNOA on ROE
Reviewed by Badraldin Alhaj
on
September 01, 2017
Rating:
Reviewed by Badraldin Alhaj
on
September 01, 2017
Rating:
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