Activity trends of the companies of real economy sector of the Far East
In order to reduce interregional inequality of the quality of life, accelerate the rates of economic growth and technological development, as well as to ensure the national safety of the country, in February 2019 the Government of Russia adopted the Spatial development strategy of the Russian Federation until 2025, and defined 12 macroregions. One of them is the Far Eastern region, including Amur, Magadan and Sakhalin regions, Jewish autonomous region, Kamchatka, Primorye and Khabarovsk territories, the Republic of Sakha (Yakutia), and Chukotka autonomous district.
Information agency Credinform has prepared a review of trends of the largest companies of real economy in the Far Eastern region.
The largest enterprises (TOP-1000) in terms of annual revenue were selected for the analysis according to the data from the Statistical Register for the latest available periods (2013-2018). The analysis was based on the data of the Information and Analytical system Globas.
The largest company of the Far Eastern economic region in term of net assets is JSC ALROSA, INN 1433000147, the Republic of Sakha (Yakutia). In 2018, net assets value of the company amounted to 334 billion RUB.
The lowest net assets value among TOP-1000 was recorded for LLC RIMBUNAN HIJAU MDF, INN 2721143979, Khabarovsk territory. In 2018, insufficiency of property of the company was indicated in negative value of -14 billion RUB.
Covering the five-year period, the average net assets values of TOP-1000 companies has a trend to increase (Picture 1).
The shares of TOP-1000 companies with insufficient property have trend to decrease over the past five years (Picture 2).
In 2018, total revenue of 10 largest companies of the region was almost 45% of TOP-1000 total revenue (Picture 3). This testifies high level of concentration of capital.
In general, there is a trend to increase in revenue (Picture 4).
Profit and loss
The largest company in term of net profit is Taas-Yuryakh Neftegazodobycha LLC, INN 1433015633, the Republic of Sakha (Yakutia). In 2018, the company’s profit of 54 billion RUB was recorded.
Covering the five-year period, there is a trend to increase in average profit of TOP-1000 companies (Picture 5).
Covering the five-year period, the average net profit values of TOP-1000 companies have the increasing trend with the decreasing average net loss value (Picture 6).
Key financial ratios
Covering the five-year period, the average values of the current liquidity ratio were significantly above the recommended one - from 1,0 to 2,0 with a trend to increase (Picture 7).
During four out of five years, relatively high level of average ROI values was recorded with a trend to decrease (Picture 8).
Covering the five-year period, business activity ratio demonstrated the decreasing trend (Picture 9).
47% companies of TOP-1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. At the same time, their share in total revenue of TOP-1000 is about 12% that is significantly lower than the national average figure (Picture 10).
Main regions of activity
Companies of TOP-1000 are registered in 9 regions and located quite unequally. Almost 52% companies largest in term of turnover are concentrated in Primorye territory and the Republic of Sakha (Yakutia) (Picture 11).
Financial position score
Assessment of the financial position of TOP-1000 companies shows that the majority of them have financial position above average (Picture 12).
Index of industrial production
According to the Federal State Statistics Service (Rosstat), during 12 months of 2019 - 2020, the trend to decrease of industrial production indexes is observed (Picture 14). The average month-to-month figure was 100,3%.
According to the same data, the share of companies of the Far Eastern economic region in the volume of revenue from sales of products, goods, works and services in 2019 was 2,838% countrywide. This figure is higher that that of 2018 with 2,763%.
Complex assessment of activity of the largest companies of real economy sector of the Far Eastern economic region, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends (Table 1).
|Trends and evaluation factors||Relative share of factors, %|
|Rate of growth (decline) in the average size of net assets||10|
|Increase / decrease in the share of enterprises with negative values of net assets||10|
|Level of competition / monopolization||5|
|Rate of growth (decline) in the average size of revenue||10|
|Rate of growth (decline) in the average size of profit (loss)||10|
|Growth / decline in average values of companies’ net profit||10|
|Growth / decline in average values of companies’ net loss||10|
|Increase / decrease in average values of total liquidity ratio||5|
|Increase / decrease in average values of return on investment ratio||-10|
|Increase / decrease in average values of asset turnover ratio, times||-10|
|Share of small and medium-sized businesses in the region in terms of revenue being more than 22%||-10|
|Financial position (the largest share)||10|
|Solvency index Globas (the largest share)||10|
|Industrial production index||-5|
|Dynamics of the share of revenue in total revenue across the RF||10|
|Average value of relative share of factors||3,8|
positive trend (factor), negative trend (factor).