Asset turnover of the largest Russian enterprises – developers of computer software

ranking 16/11/2016

Information agency Credinform prepared a ranking of the largest Russian enterprises – developers of computer software.

Russian enterprises – developers of computer software were selected according to the data from the Statistical Register for the latest available period - for 2015 (TOP-10) and then they were ranked by asset turnover (Table 1).

Asset turnover (times) is calculated as a relation of sales proceeds to the average value of company's total assets for a period and characterizes the efficiency of use by a company of all available resources, apart from sources of their attraction. The ratio shows how many times a year the full cycle of production and circulation completes, which brings the effect in the form of profit.

Asset turnover provides the most accurate assessment of the effectiveness of the operating activity of an enterprise. The duration of finding funds in the turnover of the enterprise is affected by a number of factors of internal and external nature.

The external factors include: business segment of a company, sector profile, size of an enterprise. The macroeconomic situation has a significant impact on the turnover of the company's assets. The breaking of existing ties with other organizations, inflation processes lead to the accumulation of stocks, which significantly slows the turnover of funds.

The factors of internal nature are: company’s pricing policy, structure of assets and method of evaluation of inventories.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all available combination of ratios, financial and other indicators.

Table 1. Net profit, revenue, asset turnover and solvency index Globas-i of the largest enterprises - developers of computer software (TOP-10)
Name, INN, RegionNet profit for 2015, mnl RUBRevenue for 2015, mnl RUBRevenue for 2015 by 2014, %Asset turnover, timesSolvency index Globas-i
T-SISTEMS RUS LLC
INN 7708807718 Saint-Petersburg
49,3 2 012,4 158 5,81 248
High
TEKHNOLOGICHESKII TSENTR DOICHE BANKA LLC
INN 7714941430 Moscow
225,0 5 013,3 736 4,85 233
High
MERA NN LLC
INN 5257053317 Nizhny Novgorod region
124,0 1 993,0 114 3,81 259
High
1C-SOFT LLC
INN 7730643014 Moscow
391,6 2 427,1 780 3,41 211
High
APR MEDIA SERVICES-OMD LLC
INN 7702768149 Moscow
35,1 2 661,5 117 2,87 312
Satisfactory
INFOTECS JSC
INN 7710013769 Moscow
422,9 2 700,0 174 2,56 152
The highest
EPAM SYSTEMS LLD
INN 7719232155 Moscow
940,0 5 719,6 170 2,47 166
The highest
DIASOFT LTD
INN 7715560268 Moscow
56,6 2 055,6 89 2,28 226
High
ADV Consulting Company Limited
INN 7706127570 Moscow
549,9 2 465,7 108 1,60 191
The highest
TECHNOSERV MANAGEMENT LLC
INN 7722536788 Moscow
0,4 2 455,7 146 1,56 298
High

The average value of the asset turnover ratio in the group of TOP-10 companies amounted to 3,12 in 2015. The same indicator in the group of TOP-100 companies made 2,80, by the industry average of 1,47.

Nine companies from the TOP-10 got the highest and high solvency index Globas-i, that indicates their ability to repay debt obligations in time and fully.

APR MEDIA SERVICES-OMD LLC got satisfactory solvency index Globas-i, due to the available information about its participation as a defendant in debt recovery proceedings.

Picture 1. Asset turnover and revenue of the largest enterprises - developers of computer software (TOP-10)
Asset turnover and revenue of the largest enterprises - developers of computer software (TOP-10)

The total revenue of the TOP-10 companies made 29,5 billion rubles in 2015, that is by 69% more than in 2014. The total net profit in this group of enterprises increased by 86%. At the same time MERA NN LLC, DIASOFT LTD and ADV Consulting Company Limited allowed a decrease in the value of net profit in 2015 compared with the previous period. DIASOFT LTD reduced also the size of revenue by 11%.

In the group of TOP-100 companies an increase in total revenue made 44% for the same period, in case of an increase in total net income by 45%.

All of TOP-10 companies, as well as enterprises of the industry as a whole, demonstrate positive values of asset turnover ratio.

All of this points to a high enough efficiency of the work of the industry, that is confirmed also by the data of the Federal Service of State Statistics (Picture 2).

Picture 2. Proceeds (nett) from sales of goods, works and services by activity Software development and consulting in this area (net of value added tax, excise duties and other similar obligatory payments) (mln RUB)
Proceeds (nett) from sales of goods, works and services by activity Software development and consulting in this area (net of value added tax, excise duties and other similar obligatory payments) (mln RUB)

At the same time it is observed the dependence of the growth rates on the macroeconomic situation (Picture 3).

Picture 3. The rate of growth (drawdown) of revenue by activity Software development and consulting in this area from year to year* (%)
The rate of growth (drawdown) of revenue by activity Software development and consulting in this area from year to year* (%)

*) - data for 6 months 2016 are presented by the corresponding period of 2015

In addition, it may be noted also the prospectivity of this industry in terms of the availability of significant reserves for further growth. Thus, according to the same data from Rosstat, the common costs of Russian organizations on information and communication technologies, including capital and current technologies, costs for their development, acquisition, introduction and use rose by more than 2 times in 2015 compared to 2010 and amounted to 1 184 184 mln RUB. This trend to an increase of these costs is due to the scientific-technical progress and will remain probable for the next few years, even though the decline in growth rates in recent times (Picture 4).

Picture 4. The rate of growth (reduction) of costs of Russian organizations on information and communication technologies from year to year (%)
The rate of growth (reduction) of costs of Russian organizations on information and communication technologies from year to year (%)

Companies - developers of computer software tend to a large extend to the biggest industrial and financial centers of the country - Moscow and Saint-Petersburg. This is testified by the data of the Information and analytical system Globas-i, according to which 100 the largest developers of computer software in terms of revenue for 2015 are focused in 15 regions of Russia (TOP-7 regions):

RegionNumber of registered companies
Moscow 65
Saint-Petersburg 13
Republic of Tatarstan 5
Nizhny Novgorod region 3
Belgorod region 2
Moscow region 2
Novosibirsk region 2

Thus, 78% of the largest companies in the industry are concentrated in Moscow and Saint-Petersburg.