Solvency ratio of the largest Russian enterprises, mining precious and non-ferrous metal ores

ranking 04/10/2016

Information agency Credinform prepared a ranking of the largest Russian enterprises, mining precious and non-ferrous metal ores.

The enterprises, mining precious and non-ferrous metal ores, with the highest volume of revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available accounting period (for the year 2015). Then the companies were ranked by decrease in solvency ratio (Table 1).

Solvency ratio (х) is calculated as a relation of equity capital to total assets and characterizes the company's dependence on external loans. Recommended value of the ratio is: > 0,5.

The ratio value below the minimum recommended limit means a high dependence on external sources of financing. By the worsening of conjecture in the market it may lead to liquidity crisis and to unstable financial position.

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, solvency ratio and solvency index Globas-i of the largest enterprises, mining precious and non-ferrous metal ores (TOP-10)
Name, INN, regionNet profit for 2015, in mln RUBRevenue for 2015, in mln RUBRevenue for 2015 by 2014, %Solvency ratio, (х)Solvency index Globas-i
GOLD OF NOTHERN URALS JOINT STOCK COMPANY
INN 6617001534 Sverdlovsk region
5 660,0 10 140,6 90 0,97 208
High
JOINT STOCK COMPANY SEREBRO MAGADANA
INN 4900003918 Magadan region
11 294,4 26 627,8 142 0,90 219
High
LIMITED COMPANY NOVOANGARSKY DRESSING PLANT
INN 2426003607 Krasnoyarsk territory
5 250,6 13 906,6 112 0,85 162
The highest
UCHALINSKY GOCK
INN 0270007455 Republic of Bashkortostan
3 300,7 24 151,9 127 0,76 204
High
CLOSED CORPORATION CHUKOTKA MINING GEOLOGICAL COMPANY
INN 8709009294 Chukotka Autonomous Region
10 214,7 32 335,5 87 0,66 189
The highest
JOINT-STOCK COMPANY GOLD-MINING COMPANY POLUS
INN 2434000335 Krasnoyarsk territory
37 827,5 91 691,6 152 0,53 183
The highest
JOINT STOCK COMPANY GAI MINING AND PROCESSING CO JSC
INN 5604000700 Orenburg region
2 185,1 24 511,0 141 0,51 228
High
LIMITED LIABILITY COMPANY NORTHERN GOLD
INN 8706005044 Chukotka Autonomous Region
11 227,1 24 707,0 191 0,51 246
High
ALBAZINO RESOURCES LTD
INN 2721128498 Khabarovsk territory
4 163,4 15 724,1 136 0,42 247
High
JSC Sevuralboksitruda
INN 6631001159 Sverdlovsk region
5 618,0 76 472,8 200 0,30 263
High

The average value of the solvency ratio in the group of TOP-10 largest enterprises, mining precious and non-ferrous metal ores, was 0,64 in 2015 against 0,60 in 2014. The same index in the group of TOP-100 companies made 0,42 in 2014, by industry average value of 0,48.

Recline in solvency ratio in 2015 compared with the previous year is observed by UCHALINSKY GOCK, JOINT-STOCK COMPANY GOLD-MINING COMPANY POLUS and JOINT STOCK COMPANY GAI MINING AND PROCESSING CO JSC.

ALBAZINO RESOURCES LTD and JSC Sevuralboksitruda did not meet the recommended standard of the ratio as well in 2014 as in 2015. By this the second company showed the maximum growth in revenue in 2015 in regard to 2014 in the group of TOP-10 companies. The decrease in revenue for this period was by GOLD OF NOTHERN URALS JOINT STOCK COMPANY and CLOSED CORPORATION CHUKOTKA MINING GEOLOGICAL COMPANY.

Though, on the combination of financial and non-financial indicators, all enterprises got the highest or high solvency index Globas-i, that indicates their ability to repay their debts in time and fully.

Solvency ratio and revenue of the largest enterprises, mining precious and non-ferrous metal ores (TOP-10)
Picture 1. Solvency ratio and revenue of the largest enterprises, mining precious and non-ferrous metal ores (TOP-10)

The total revenue of the TOP-10 companies reached 340,3 billion rubles in 2015, that is by 42% more than in 2014. At the same time the total net income in 2014 and in 2015 increased more than twice in relation to the corresponding previous periods.

In general, the enterprises of TOP-10 and TOP-100 groups demonstrate a high enough independence on external sources of funds. However, the discernible trend to a decrease in the level of production is observed in this industry recently. This is as evidenced by the data of the Federal State Statistics Service (Rosstat) (Picture 2).

The index of production (the period from the beginning of the year, an increase / decrease in % to the corresponding period of the previous year)
Picture 2. The index of production (the period from the beginning of the year, an increase / decrease in % to the corresponding period of the previous year)

The enterprises, mining precious and non-ferrous metal ores, are distributed across country's regions unequal and biased to the corresponding mineral fields. Thus, according to the data of the Information and analytical system Globas-i, 100 the largest companies on the volume of revenue for 2014 are registered in 22 regions. The greatest number of them is registered in the regions shown in Table 2.

Table 2. TOP-10 regions, where the majority of enterprises is registered, mining precious and non-ferrous metal ores.
RegionNumber of companies
Republic of Sakha (Yakutia) 13
Magadan region 11
Irkutsk region 10
Krasnoyarsk territory 9
Khabarovsk territory 8
Chukotka Autonomous Region 7
Amur region 6
Sverdlovsk Region 6
Kamchatka territory 4
Republic of Bashkortostan 4

Thus, 78% of the largest companies of this industry are concentrated in 10 regions of the country.