Equity turnover ratio of the largest Russian motor freight companies

ranking 28/06/2016

Information Agency Credinform has prepared the ranking of the largest Russian motor freight companies by equity turnover ratio. The largest enterprises (TOP-10) in terms of revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2014). Then, the companies were ranged by equity turnover ratio for a year (Table 1).

Equity turnover ratio (times) is calculated as a ratio of revenue to yearly average sum of equity and demonstrates the company’s usage rate of total assets.

Equity turnover ratio reflects the turnover rate of own capital. The higher is the ratio value, the better the enterprise uses its own funds. Accordingly, low ratio value indicates about inaction of the part of own funds.

Too high equity ratio or, in other words, significant excess of the sales level over invested capital leads to growth in credit resources. The creditors’ risk is also growing and the enterprise may meet serious difficulties due to decrease in income. 

For the most full and fair opinion about the company’s financial position, not only compliance with standard values should be taken into account, but also the whole set of financial indicators and ratios.   

Table 1. Net profit, revenue, equity turnover ratio, solvency index Globas-i of the largest Russian motor freight companies (TOP-10)
Name, INN, Region2014 netprofit, mln RUB2014 revenue, mln RUB2014/2013 revenue, %Equity turnover ratio, timesSolvency index Globas-i
LLC MALINOV YAR
INN 3123282167
Belgorod region
18,1 1 677,2 117 101,19 252 High
LLC KADROVYI CENTER OZD
INN 7838384830
Saint-Petersburg
14,0 1 269,4 82 11,07 220 High
LLC AVTOTRANSPORTNOE UPRAVLENIE
INN 7414006930
Chelyabinsk region
4,9 2 066,9 112 4,61 231 High
LLC REGION 42
INN 4217104669
Kemerovo region
126,4 2 870,4 101 4,40 227 High
NAO LORRY
INN 6663006255
Sverdlovsk  region
-124,3 3 084,4 85 2,64 288 High
LLC BELOZERNOE UPRAVLENIE TEHNOLOGICHESKOGO TRANSPORTA
INN 8603104188
Khanty-Mansi Autonomous Okrug - Yugra
16,6 1 646,0 57 2,18 223 High
LLC NORILSK PROMYSHLENNYI TRANSPORT
INN 2457063821
Krasnoyarsk Territory
59,3 4 147,5 100 2,05 223 High
JOINT STOCK FIRST AUTOKOMBINAT OF A NAME G.L.KRAUSE
INN 7734032873
Moscow
382,1 1 917,8 84 1,15 164 The highest
PAO UPRAVLENIE PO PROFILAKTIKE I REKILTIVATSII
INN 4212005449
Kemerovo region
38,0 2 709,0 111 -44,78 303 Satisfactory
LLC USINSK UPRAVLENIE  TEHNOLOGICHESKOGO TRANSPORTA
INN 1106022790
The Komi Republic
-71,7 2 147,7 105 -121,19 325 Satisfactory

Equity turnover ratio of the largest motor freight companies varies from 101,19 times (LLC MALINOV YAR), to a negative value -121,19 times (USINSK UPRAVLENIE  TEHNOLOGICHESKOGO TRANSPORTA). Equity turnover ratio of the largest enterprise by annual revenue LLC NORILSK PROMYSHLENNYI TRANSPORT is 2,05 times per period. 

2 participants from the TOP-10 list PAO UPRAVLENIE PO PROFILAKTIKE I REKILTIVATSII and LLC USINSK UPRAVLENIE TEHNOLOGICHESKOGO TRANSPORTA have negative equity ratio; that indicates about difficult financial position and low solvency level. The available funds, short-term financial investment and accounts receivable don’t cover their accounts payable.  These enterprises have satisfactory solvency index Globas-i, in particular, due to the loss in the balance structure; this fact confirms the risk of non-fulfillment of financial obligations.

Other participants of TOP-10 have the highest and high solvency index Globas-i, that shows their stable financial position.

Picture 1. 2014 revenue and equity turnover ratio of the largest Russian motor freight companies (TOP-10)

2014 revenue and equity turnover ratio of the largest Russian motor freight companies

According to 2014 results, the annual revenue of TOP-10 enterprises amounted to 23,5 bln RUB, that is 6% lower than total revenue in 2013. 4 participants demonstrated decrease in 2014 revenue and 7 companies showed decrease even in net profit.

Taking into account the difficult economic situation of business loss, the trucking industry as a whole has some difficulties. This testifies the data from the Federal State Statistics Service on freight turnover of motor transport in Russia (Picture 2).

Picture 2. The freight turnover of motor transport (bln tkm, ratio value for the year)

The freight turnover of motor transport

This data demonstrates the maximum freight turnover in 2013 and subsequent decrease in 2014 and 2015.  In comparison with 2013 the decrease in 2015 freight turnover amounted to almost 7%.

Cargo transportations are characterized by relatively equal concentration of enterprises across the country with reference to large industrial centers and regions with developed mining industry. This fact is confirmed by the data from the Information and analytical system Globas-i® on distribution across the country of 100 largest registered companies of the industry in terms of 2014 revenue (TOP-12 of Regions):

RegionNumber of registered companies
Saint-Petersburg 11
Moscow 8
Kemerovo region 7
Sverdlovskregion 6
Bryanskregion 3
Krasnoyarsk Territory 3
Leningradregion 3
Moscow region 3
Nizhny Novgorod region 3
Omskregion 3
Smolensk region 3
Khanty-Mansi Autonomous Okrug 3