Return on investment of the largest Russian manufacturers of cast iron, steel and ferroalloys
ranking 08/12/2017
Information agency Credinform presents the ranking of the largest Russian manufacturers of cast iron, steel and ferroalloys. The largest companies (TOP-10) in terms of annual revenue volume were selected for the ranking, according to the data from the Statistical register for the latest accounting periods (2016 and 2015). Then they were ranked by the return on investment ratio in 2016 (Table 1). Analysis was based on the data of the Information and Analytical system Globas.
Return on investment (%) is calculated as a ratio of net profit (loss) to the value of net assets. The indicator characterizes the level of profitability per rouble, receiving from investments, e.g. amount of monetary units required by an enterprise for receiving one monetary unit of net profit. With the help of the ratio it is necessary to evaluate the reasonability of the borrowed funds raising at a certain percent.
Normative values for profitability indicators are not provided, because they vary depending on the industry in which an enterprise operates. The indicators of each particular company should be considered in comparison with industrial indicators.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s indicators and financial ratios.
| Name, INN, region | Revenue, bln RUB | Revenue, bln RUB | Return on investment, % | Solvency index Globas | |||
| 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | ||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| AO OEMK INN 3128005752 Belgorod region |
76,0 | 79,5 | -1,7 | 30,4 | -5,36 | 298,01 | 180 High |
| JSC SEVERSTAL INN 3528000597 Vologda region |
278,6 | 305,3 | 40,1 | 84,7 | 32,87 | 58,22 | 170 Superior |
| CHELYABINSK METALLURGICAL PLANT OAO INN 7450001007 Chelyabinsk region |
96,1 | 107,1 | 4,0 | 15,0 | 17,08 | 38,70 | 350 Adequate |
| JSC NLMK-URAL INN 6646009256 Sverdlovsk region |
30,0 | 35,6 | -0,3 | 2,2 | -9,09 | 37,63 | 251 Medium |
| JSC MAGNITOGORSK IRON & STEEL WORKS INN 7414003633 Chelyabinsk region |
314,1 | 339,1 | 30,7 | 68,0 | 21,21 | 33,80 | 145 Superior |
| AO CHEMK INN 7447010227 Chelyabinsk region |
48,5 | 48,1 | 5,8 | 7,0 | 38,68 | 31,78 | 173 Superior |
| JSC NOVOLIPETSK STEEL INN 4823006703 Lipetsk region |
318,6 | 335,2 | 49,9 | 36,4 | 15,21 | 11,56 | 150 Superior |
| JSC EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT INN 4218000951 Kemerovo region |
140,9 | 148,1 | 21,3 | 8,9 | 26,47 | 9,94 | 162 Superior |
| JSC EVRAZ NIZHNY TAGIL METALLURGICAL PLANT INN 6623000680 Sverdlovsk region |
108,2 | 111,9 | 2,4 | 14,3 | 1,51 | 8,14 | 180 High |
| JSC URAL STEEL INN 5607019523 Orenburg region |
51,9 | 60,6 | 2,9 | 0,3 | 10,06 | 1,08 | 192 High |
| Total for TOP-10 | 1 463,0 | 1 570,6 | 155,2 | 267,1 | |||
| Average value for TOP-10 | 146,3 | 157,1 | 15,5 | 26,7 | 14,86 | 52,89 | |
| Average value for the industry | 0,3 | 0,5 | 3,7 | 3,7 | 14,12 | 26,22 | |
Average industry value of the return on investment ratio of the TOP-10 companies is above average in 2016. All the TOP-10 companies in 2016 have positive values of the ratio. Four companies out of TOP-10 companies in 2016 decreased indicators of net profit or revenue in comparison to the previous period (marked with red filling in columns 3 and 5 of Table 1).
Picture 1. Return on investments and revenue of the largest Russian manufacturers of cast iron, steel and ferroalloys (TOP-10)Average industrial indicators of the return on investment ratio for the last ten years demonstrate an increasing tendency. It may show gradual increase of profitability of companies in this field of activity (Picture 2).
Picture 2. Change of average industrial values of the return on investment ratio of the Russian manufacturers of cast iron, steel and ferroalloys in 2007 – 2016 Nine companies out of TOP-10 have got from superior to medium solvency indexes Globas that shows their ability to pay the debts in time and fully.
CHELYABINSK METALLURGICAL PLANT OAO has got adequate solvency index Globas, due to the information about bankruptcy claims and open enforcement orders. The forecast for index development is negative.