GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Al Hassan Engineering Co SAOG (MUS:HECI) » Definitions » ROE %

Al Hassan Engineering CoOG (MUS:HECI) ROE % : Negative Equity% (As of Dec. 2020)


View and export this data going back to 1999. Start your Free Trial

What is Al Hassan Engineering CoOG ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Al Hassan Engineering CoOG's annualized net income for the quarter that ended in Dec. 2020 was ر.ع14.62 Mil. Al Hassan Engineering CoOG's average Total Stockholders Equity over the quarter that ended in Dec. 2020 was ر.ع-52.68 Mil. Therefore, Al Hassan Engineering CoOG's annualized ROE % for the quarter that ended in Dec. 2020 was Negative Equity%.

The historical rank and industry rank for Al Hassan Engineering CoOG's ROE % or its related term are showing as below:

MUS:HECI's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.68
* Ranked among companies with meaningful ROE % only.

Al Hassan Engineering CoOG ROE % Historical Data

The historical data trend for Al Hassan Engineering CoOG's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Al Hassan Engineering CoOG ROE % Chart

Al Hassan Engineering CoOG Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - Negative Equity Negative Equity

Al Hassan Engineering CoOG Semi-Annual Data
Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - Negative Equity Negative Equity

Competitive Comparison of Al Hassan Engineering CoOG's ROE %

For the Engineering & Construction subindustry, Al Hassan Engineering CoOG's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Al Hassan Engineering CoOG's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Al Hassan Engineering CoOG's ROE % distribution charts can be found below:

* The bar in red indicates where Al Hassan Engineering CoOG's ROE % falls into.



Al Hassan Engineering CoOG ROE % Calculation

Al Hassan Engineering CoOG's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=14.619/( (-59.987+-45.368)/ 2 )
=14.619/-52.6775
=Negative Equity %

Al Hassan Engineering CoOG's annualized ROE % for the quarter that ended in Dec. 2020 is calculated as

ROE %=Net Income (Q: Dec. 2020 )/( (Total Stockholders Equity (Q: Dec. 2019 )+Total Stockholders Equity (Q: Dec. 2020 ))/ count )
=14.619/( (-59.987+-45.368)/ 2 )
=14.619/-52.6775
=Negative Equity %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is one times the annual (Dec. 2020) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Al Hassan Engineering CoOG  (MUS:HECI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2020 )
=Net Income/Total Stockholders Equity
=14.619/-52.6775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(14.619 / 22.044)*(22.044 / 27.042)*(27.042 / -52.6775)
=Net Margin %*Asset Turnover*Equity Multiplier
=66.32 %*0.8152*N/A
=ROA %*Equity Multiplier
=54.06 %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2020 )
=Net Income/Total Stockholders Equity
=14.619/-52.6775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (14.619 / 14.619) * (14.619 / 1.715) * (1.715 / 22.044) * (22.044 / 27.042) * (27.042 / -52.6775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 8.5242 * 7.78 % * 0.8152 * N/A
=Negative Equity %

Note: The net income data used here is one times the annual (Dec. 2020) net income data. The Revenue data used here is one times the annual (Dec. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Al Hassan Engineering CoOG ROE % Related Terms

Thank you for viewing the detailed overview of Al Hassan Engineering CoOG's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Al Hassan Engineering CoOG (MUS:HECI) Business Description

Traded in Other Exchanges
N/A
Address
Ruwi, P.O Box 1948, Muscat, OMN, 112
Al Hassan Engineering Co SAOG is a contracting company providing electrical, mechanical, instrumentation and civil contracting services to the Oil, Gas and Petrochemicals, Power, Water and Wastewater sectors. The company also provides fabrication that includes design, fabrication, and repair of pressure vessels and boilers and maintenance services across all sectors. It derives its revenues from the contracting services it provides to various sectors.

Al Hassan Engineering CoOG (MUS:HECI) Headlines

No Headlines