Trends in activity of jewellery companies
Information agency Credinform has prepared a review of trends in activity of Russian jewellery companies.
The largest companies engaged in manufacture, sale and repair of products made of precious metals and stones (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2016 - 2020). The company selection and analysis were based on data of the Information and Analytical system Globas.
The largest company in terms of net assets is STATE UNITARY ENTERPRISE THE COMMETTEE FOR PRECIOUS METALS AND GEM STONES OF THE REPUBLIC SAKHA (YAKUTIA), INN 1435343333, the Republic of Sakha (Yakutia), retail sale of jewellery in specialized stores. In 2020 net assets of the company amounted to more than 9,4 billion RUB.
The smallest size of net assets in TOP-1000 had LLC STOLICHNYI YUVELIRNYI ZAVOD, INN 7715602359, Moscow, manufacture of jewellery, medals from precious metals and stones, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated, 27/01/2021. The lack of property of the company in 2020 was expressed in negative terms -34,3 billion RUB.
For the last five years, the average industry values of net assets showed the downward tendency with decreasing dynamics of growth rates (Picture 1).
For the last five years, the share of ТОP-1000 enterprises with lack of property had the positive decreasing trend (Picture 2).
In 2020, the total revenue of 10 largest companies amounted to 52% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of capital concentration in the jewellery industry.
In general, the decreasing trend in sales revenue with downward dynamics of growth rates is observed (Picture 4).
Profit and loss
The largest company in terms of net profit is MOSCOW JEWELRY FACTORY, INN 7724181241, Moscow, manufacture of jewellery, medals from precious metals and stones. In 2020 the company’s profit amounted to almost 2,3 billion RUB.
For the last five years, the average profit values show the decreasing tendency (Picture 5).
Over a five-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is increasing (Picture 6).
Main financial ratios
For the last five years, the average values of the current liquidity ratio were higher than the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).
Within five years, the decreasing trend of the average values of ROI ratio is observed (Picture 8).
For the last five years, this business activity ratio demonstrated the decreasing trend (Picture 9).
96% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is almost 42%, which is twice higher than the national average value in 2018 – 2019 (Picture 10).
Main regions of activity
TOP-1000 companies are registered in 70 regions of Russia and are unequally located across the country. Almost 47% of the largest enterprises in terms of revenue are located Moscow (Picture 11).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part has the average financial position (Picture 12).
Solvency index Globas
Most of TOP-1000 companies got superior/high and strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).
A complex assessment of the largest jewellery companies, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of negative trends within 2016-2020 (Table 1).
|Trends and assessment factors||Relative share, %|
|Dynamics of average net assets value||-10|
|Growth/drawdown rate of average net assets value||-10|
|Increase / decrease in the share of enterprises with negative net assets||10|
|The level of capital concentration||-10|
|Dynamics of average revenue||-10|
|Growth/drawdown rate of average revenue||-10|
|Dynamics of average profit (loss)||-10|
|Increase / decrease in average net profit of companies||10|
|Increase / decrease in average net loss of companies||-10|
|Increase / decrease in average values of current liquidity ratio||5|
|Increase / decrease in average values of ROI ratio||-10|
|Increase / decrease in average values of assets turnover ratio, times||-10|
|Share of small and medium-sized businesses by revenue more than 20%||10|
|Financial position (the largest share)||5|
|Solvency index Globas (the largest share)||10|
|Average value of factors||-3,1|
favorable trend (factor), unfavorable trend (factor)