Return on assets of the largest Russian enterprises for passenger transportation

ranking 25/04/2017

Information agency Credinform has prepared a ranking of the largest Russian enterprises for passenger transportation. The TOP-10 companies with the highest volume of revenue were selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2015 and 2014). Enterprises of the rating are ranked by return on assets (Table 1).

Return on assets ratio (%) is calculated as the relation of the sum of net profit and interest payable to the total assets value and shows how many monetary units of net profit gets every unit of total assets. The ratio characterizes the effectiveness of using of all available resources and financial management. The higher is the ratio value, the more effective is business, that is higher return per every invested in assets monetary unit.

However, it should be considered that book value of assets cannot correspond to its current market price to a great extent. For example, under inflation the book value of fixed assets with a course of time will be more and more underestimated, that leads to overestimation of return on assets. In other words, it is necessary to pay attention not only to the assets structure but also to its maturity.

Dynamics of this indicator also should be considered. The subsequent decrease demonstrates decline of effectiveness in the assets use.

Table 1. Net profit, revenue, return on assets, solvency index Globas-i® of the largest Russian enterprises for passenger transportation (TOP-10)
NameNet profit (loss) of 2015, mln RUBRevenue of 2015, mln RUBRevenue of 2015 to 2014, +/- %Return on assets, %Solvency index Globas-i®
JSC ORENBURG AIRLINES
INN 5638057840 Orenburg region
506,4 22 765,9 17 6,16 282
High
JSC SIBERIA AIRLINES
INN 5448100656 Novosibirsk region
922,9 82 214,5 16 3,04 282
Highest
JSC RUSSIAN RAILWAYS
INN 7708503727 Moscow
318,0 1 510 757,0 8 0,01 227
High
SUE MOSCOW METRO NAMED AFTER V.I.LENIN
INN 7702038150 Moscow
-505,2 87 471,0 4 -0,03 249
High
SUE SAINT-PETERSBURG METRO
INN 7830000970 Saint-Petersburg
-270,1 18 831,6 8 -0,35 234
High
LLC NORD WIND
INN 7733646084 Moscow
-270,8 26 867,4 -34 -4,71 309
Satisfactory
SUE MOSGORTRANS
INN 7705002602 Moscow
-5 577,6 41 534,2 3 -7,08 247
High
JSC AEROFLOT-RUSSIAN AIRLINES
INN 7712040126 г. Москва
-18 927,8 366 307,5 52 -10,15 176
Highest
LLC GAZPROMAVIA AVIATION COMPANY
INN 7736046504 Moscow
-4 652,5 16 164,8 2 -12,00 258
High
JSC TRANSAERO AIRLINES
INN 5701000985 Saint-Petersburg
-98 932,7 97 711,1 -17 -118,86 450
Low
Total for TOP-10 companies
(* - average value for the group)
-127 389,6 2 270 625,0 *11 *-14.40  
Total for TOP-100 companies
(*- average value for the group)
-128 780,6 2 447 090,6 *12 *-4,97  

Average values of return on assets in 2015 are negative both in the TOP-10 and in the TOP-100 groups.

Industry average values of return on assets are shown in the Table 2.

Table 2. Industry average values of return on assets in terms of passenger transport types
Type of passenger transport201320142015
Maritime -2,49 -7,15 3,96
Railway in suburban traffic н/д 0,23 1,14
Railway backbone 0,55 -0,71 0,33
Underground н/д 0,21 -0,12
Taxi -10,38 34,05 -0,30
Inland water 6,77 -3,96 -6,39
Bus -4,62 -5,91 -6,99
Tramway -1,86 -14,15 -8,96
Trolley bus -6,55 -4,03 -15,36
Air -3,12 -12,10 -31,02

Only three companies out of TOP-10 have got positive values of return on assets.

Return on assets and revenue of the largest Russian enterprises for passenger transportations (TOP-10)
Picture 1. Return on assets and revenue of the largest Russian enterprises for passenger transportations (TOP-10)

Revenue volume of the 10 largest companies is 93% of total revenue of the 100 largest companies. It shows high level of monopolization, first of all, in the area of railway passenger transportations, because share of the largest company, according to the revenue volume in 2015 - JSC RUSSIAN RAILWAYS is almost 67% of total revenue of the TOP-10 group. Besides, enterprises for bus passenger transportations have got the biggest share in the total revenue of TOP-100 companies (Picture 2).

Share of TOP-100 companies` total revenue in 2015 in terms of passenger transportation type, %
Picture 2. Share of TOP-100 companies` total revenue in 2015 in terms of passenger transportation type, %

Eight out of TOP-10 companies have got the highest or high solvency index Globas-i®, that demonstrates the ability to pay the debts in time and to the full extent.

LLC NORD WIND has got satisfactory solvency index Globas-i® because of the information about the participation as a defendant in arbitration court proceedings in terms of debt collection, unclosed enforcement orders and loss in the balance sheets. Projected growth of the index is stable.

JSC TRANSAERO AIRLINES has got low solvency index Globas-i® due to the information about claim for recognition of the company bankrupt, listing in the blacklist of suppliers, unclosed enforcement orders and loss in the balance sheets. Projected growth of the index is negative.

Seven out of TOP-10 companies decreased indicators of revenue compared to the previous period or have loss in 2015 (marked with red shading in Table 1).

In the TOP-100 group 53 lossmaking companies were observed in 2014, and in 2015 the amount insignificantly decreased to 52.

In general, monetary indicators of passenger transportations in 2016 have grown compared to 2010 (except for taxi transportations), that is confirmed by data from the Federal State Statistics Service (Table 3).

Table 3. Revenue (net) of passenger transportation services (minus VAT, excises and other statutory payments), th RUB
Type of passenger transportation20102011201220132014201520162016 to 2010, %
Scheduled air transport 383 468 090 462 801 843 555 009 646 647 696 800 647 734 812 800 879 312 943 788 636 146
Other scheduled land transport 221 218 593 243 591 843 262 093 658 275 516 742 299 906 865 315 496 370 344 539 442 56
Railway backbone transport 126 339 471 168 499 283 225 403 027 238 174 601 232 785 908 231 417 020 269 024 137 113
Urban electric transport 105 132 380 122 574 362 134 769 343 134 123 195 149 231 508 160 869 125 176 806 915 113
Automobile (bus) scheduled transport 115 371 219 120 476 784 126 953 757 138 283 128 148 558 682 151 403 886 152 226 256 32
Intra-urban automobile (bus) scheduled transportations 93 011 551 97 243 721 104 052 116 115 099 278 126 488 948 129 472 148 131 675 112 42
Underground 71 877 854 82 852 474 93 357 108 92 309 091 105 082 890 111 479 422 131 326 069 83
Nonscheduled air transport 21 314 554 14 801 226 11 563 326 18 956 009 54 171 380 65 995 239 46 968 613 120
Other land transport 26 105 409 25 322 227 30 280 212 36 059 091 47 300 396 49 030 510 38 541 742 48
Tramway transportations 19 250 939 20 029 252 21 089 025 23 249 932 23 344 031 29 340 618 25 717 386 34
Trolley bus transportations 13 506 290 15 936 329 16 696 068 15 089 821 17 093 400 15 716 685 15 711 528 16
Inland water transport 1 539 154 4 211 332 4 186 707 4 722 625 3 945 674 2 903 341 14 440 178 838
Suburban scheduled automobile (bus) transportations 10 289 459 12 568 305 13 333 307 13 200 025 13 863 063 13 205 285 11 215 752 9
Funicular, ropeway and elevator transportations 199 593 198 876 362 254 663 858 1 818 415 2 792 303 4 606 756 2 208
Intra-urban and suburban railway transportations 489 372 3 746 914 3 578 382 3 465 622 3 363 348 3 703 046 4 051 932 729
Maritime transport 772 271 364 609 564 708 316 833 299 127 311 548 3 691 043 378
Taxi 3 045 371 2 930 484 2 424 045 1 714 089 758 524 1 251 386 933 488 -69
*) In Table 3 decrease of revenue is marked with red shading and growth with green.

The enterprises for passenger transportation are distributed on the territory of the country equally, attracting to the thickly populated regions because of specific activity. It is confirmed by data from the Information and Analytical system Globas-i®, according to that the 100 largest companies in terms of revenue volume for 2015 are registered in 42 regions of Russia. (Picture 3).

Distribution of the 100 largest Russian companies for passenger transportation according to the regions of Russia
Picture 3. Distribution of the 100 largest Russian companies for passenger transportation according to the regions of Russia