Huntington Ingalls Industries is America's largest warships shipbuilder. Providing professional services to government and industry. For more than a century, Mississippi's Ingalls section and Virginia's Newport News section have built more ships than any other US Navy shipbuilder. Over 70% of US Navy warships are built by us. It is also among the only aircraft carriers in the United States. In addition, in the field of Techinical Solutions, we are providing various services to the government in the energy, oil and gas markets. The company does most of our business with the U.S. Government. As the most important contractor and a member of the project team, it has been most committed to DOD.
The business is divided into three parts. The Ingalls segment is in the business of designing, building, repairing and maintaining non-nuclear warships. The Newport News segment designs, builds, fuels, repairs and maintains nuclear warships. The Technical Solutions segment supports the Navy and provides nuclear fuel, oil and gas services.
Looking at the operating profit and net profit for the half year in the table on the right, it can be seen that operating profit decreased by 19% and net profit by 9% compared to the same period last year.
It can be roughly divided into shipbuilding and management sales and service provision sales. In the semiannual table on the right, our Products segment sales rose 1% year-on-year. In the service segment, it was down 1%, and we can see that there is no significant difference compared to the same period last year.
In the Newport News segment, the decline in operating profit has affected the overall decline in operating profit. This is due to reduced sales of aircraft carriers and nuclear submarines.
Our order balance is about 48 billions $ as of June 30, 2020, and about 16.5% will be recorded in sales in 2020. It is expected to supply all order balances in 2023.
The figure on the left is HII, and the figure on the right is the industry average. Its ROE is maintained at around 32%, and when looking at the Quick Ratio, it is 1.22, which does not seem to have any short-term liquidity problems. Under that, the Solvency Ratio, LT Debt to Equity, is 135.64%, which is suitable for the shipbuilding industry. The asset turnover ratio is 1.15, which is 1.15 times higher than the company's assets, and the dividend payout ratio is 30.49%. The dividend growth rate is 19.79%, recording a high growth rate.
HII is the US Navy's largest partner, responsible for over 70% of the ship's supply. The demand is essential and fixed. As we saw earlier, there is a remaining order balance equal to five times the annual sales. It has excellent financial soundness, maintains a high ROE of over 30%, and dividend growth is at a high level of around 20% over the past 4 years.
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