This factor is a proxy indicator of the profitability factor in the Fama-French five-factor model. It measures the efficiency of a company in generating profits using its net operating assets by calculating the ratio of operating profit to average net assets in the most recent 12 months. Specifically, the numerator selects the operating profit of the rolling 12 months, which avoids the interference of short-term fluctuations on profitability and more accurately reflects the company's ability to make sustained profits. The denominator selects the average of the equity attributable to the parent company at the beginning and end of the period, aiming to eliminate the impact of changes in net assets during the reporting period on the factor value, making the factor value more stable and reliable. A higher return on net operating assets means that the company can more effectively use its net assets to generate profits, which is generally considered to be a signal of strong profitability of the company. Therefore, this factor can be used to identify stocks with high profitability and asset efficiency, and use them for portfolio construction and risk management.