TOP 10 cast iron and steel producers by the current assets to equity ratio

ranking 13/05/2021

Information agency Credinform represents a ranking of the largest Russian cast iron and steel producers. Companies with the largest volume of annual revenue (TOP 10 and TOP 100) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by the current assets to equity ratio (Table 1). The selection and analysis were based on the data of the Information and Analytical system Globas.

Current assets to equity ratio (х) reflects the company's ability to maintain the level of current assets and replenish it from own funds. The ratio is calculated as current asstes to shareholders’ equity. The recommended value is between 0,2 and 0,5.

The reduction of the ratio shows the possible slowdown in payment of receivables or tightening of commodity credit by suppliers and contractors. The growth means the increasing capability to repay current liabilities.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, current assets to equity ratio and solvency index Globas of the largest cast iron and steel producers (TOP 10)
Name, INN, region, core activity Revenue, billion RUB Net profit (loss), billion RUB Current assets to equity ratio (x) from 0,2 to 0,5 Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
JSC URAL STEEL
INN 5607019523 Orenburg region
Cast iron, steel and ferroalloy production
down81,4 down73,9 down-7,1 up-0,2 down0,20 up0,25 253 Medium
JSC MAGNITOGORSK IRON & STEEL WORKS
INN 7414003633 Chelyabinsk region
Cast iron, steel and ferroalloy production
down434,9 down400,2 down55,6 down51,5 down0,02 down-0,03 186 Superior
JSC NOVOLIPETSK STEEL MILL
INN 4823006703 Lipetsk region
Production of cold-rolled steel sheets
down421,8 up437,1 down83,4 down61,1 down-0,12 down-0,03 212 Strong
JSC EVRAZ NIZHNY TAGIL METALLURGICAL PLANT
INN 6623000680 Sverdlovsk region
Cast iron, steel and ferroalloy production
up190,7 down186,1 up110,8 down65,3 down-0,22 down-0,64 183 Superior
JSC EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT
INN 4218000951 Kemerovo region - Kuzbass
Production of high-quality hot-rolled steel and wire rod
down214,1 up241,4 down4,5 up20,3 down-0,11 down-0,67 201 Strong
JSC SEVERSTAL
INN 3528000597 Vologda region
Cast iron, steel and ferroalloy production
up457,6 down450,9 down105,7 up114,9 down-0,85 down-0,86 215 Strong
JSC OSKOL ELECTROMETALLURGICAL PLANT
INN 3128005752 Belgorod region
Production of high-quality hot-rolled steel and wire rod
down103,3 up104,1 down4,7 down-1,2 up-40,64 up-1,25 252 Medium
JSC TULACHERMET
INN 7105008031 Tula region
Cast iron, steel and ferroalloy production
down53,7 up59,3 down-2,7 up2,1 down-2,56 up-1,74 217 Strong
ABINSK ELECTRIC STEEL WORKS LTD.
INN 2323025302 Krasnodar territory
Production of high-quality hot-rolled steel and wire rod
up50,2 up56,0 up2,8 down-3,4 down-0,15 down-1,86 298 Medium
JSC CHELYABINSK METALLURGICAL PLANT
INN 7450001007 Chelyabinsk region
Cast iron, steel and ferroalloy production
A lawsuit on bankruptcy was filed against the company.
down113,0 up114,0 up5,3 down-0,5 up-1,84 down-3,37 400 Weak
Average value for TOP 10 down212,1 up212,3 down36,3 down31,0 down-4,63 up-1,06  
Average value for TOP 100 down26,5 down26,3 down3,9 down3,2 up0,25 down-0,45  
Average industry value down5,5 down5,4 down0,8 down0,6 down-0,56 down-0,76  

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

The industry average 2020 values of current assets to equity ratio, as well as of TOP 10 and TOP 100 companies, were negative. Seven companies decreased their values in 2020, and nine did in 2019.

In 2020, only three companies gained the revenue, and four ones increased net profit. The revenue of TOP 10 climbed at average 1%, and TOP 100’s one fell at average 1%. The industry average figure decreased 2%.

In 2020, four companies showed a loss, while two did in 2019. There was almost 15% gain in TOP 10’s profit, while TOP 100’s one fell more than 6 times. On average for the industry, there was recorded a nearly 7 times decrease.

In general, the industry average current assets to equity ratio was within the negative values. The highest value was recorded in 2017 and the lowest one was in 2020 (Picture 1).

Picture 1. Change in the industry average values of current assets to equity ratio of cast iron and steel producers in 2016 - 2019 Picture 1. Change in the industry average values of current assets to equity ratio of cast iron and steel producers in 2016 - 2019