Debt to assets ratio of the largest Russian manufacturers of marine, railway and air carriers and equipment

ranking 14/12/2018

Information agency Credinform has prepared a ranking of the largest Russian transportation facilities and equipment manufacturers. The manufacturers of marine, railway and air carriers and equipment, excluding producers of motor vehicles and fighting vehicles, with the largest annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 - 2017). Then they were ranked by solvency ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Debt to assets ratio (x) is a ratio of current and non-current debt to total assets, and it indicates the share of company's assets being financed by loans.

Total recommended value of the ratio is from 0,2 to 0,5. A value that exceeds the maximum standard value indicates an excessive loan overburden that may facilitate development, but as well may have a negative impact on stability of corporate funds. A value lower than the minimum standard value may speak of a conservative financial management strategy and of an excessive caution in raising new debt funds.

A calculation of practical values of financial ratios, that might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries. Practical value of debt to assets ratio for transportation facilities and equipment manufacturers amounts from 0.32 to 0.99 in 2017.

The whole set of indicators and financial ratios is to be considered to get a full and comprehensive vision of company’s financial standing.

Table  1. Net profit, revenue, solvency index Globas of the largest Russian transportation facilities and equipment manufacturers (TOP-10)
Name, INN, region, type of activity Sales revenue, billion RUB Net profit (loss), billion RUB Debt to assets ratio, (х) Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
METROVAGONMASH NJSC
INN 5029006702 Moscow region
Manufacture of railway locomotives and rolling stock
up26,3 up43,6 up2,4 up2,8 down0,66 up0,50 142 Superior
ZELDORREMMASH JSC
INN 7715729877 Moscow
Provision of services of rebuild and equipping (completion) of railway locomotives, tram motor carriages and other rolling stock
up32,7 up41,2 up0,1 up0,3 up0,51 down0,55 226 Strong
SUKHOI CIVIL AIRCRAFT NJSC
INN 7714175986 Moscow
Manufacture of helicopters, aeroplanes and other aircraft
up46,8 up55,4 up-3,8 up-1,1 up0,54span> down0,58 256 Medium
AVIATION HOLDING COMPANY SUKHOI PJSC
INN 7740000090 Moscow
Manufacture of helicopters, aeroplanes and other aircraft
up108,0 up122,8 down2,4 up4,3 down0,55 down0,60 163 Superior
UNITED SHIPBUILDING CORPORATION NJSC
INN 7838395215 Saint Petersburg
Building of ships, vessels and floating structures
up48,6 down44,8 down0,6 down0,2 down0,65 up0,64 257 Medium
ROSTOV HELICOPTER PRODUCTION COMPLEX ROSTVERTOL named after B.N. Slyusar PJSC
INN 6161021690 Rostov region
Manufacture of helicopters, aeroplanes and other aircraft
up84,3 up99,1 up18,6 down16,7 up0,73 up0,68 167 Superior
ODK-Ufa Engine-Building Production Association
INN 0273008320 Republic of Bashkortostan
Manufacture of turbo-jet and turbo-prop engines and their parts
up68,8 up73,8 up3,5 down12,5 up0,77 up0,69 167 Superior
Tikhvin Railway Car Building Plant NJSC
INN 4715019631 Leningrad region
Manufacture of railway locomotives and rolling stock
up41,8 up49,7 up2,6 down-0,1 up0,72 down0,75 269 Medium
IRKUT CORPORATION NJSC
INN 3807002509 Moscow
Manufacture of helicopters, aeroplanes and other aircraft
up99,9 down84,6 up2,2 up3,0 down0,90 up0,86 175 High
Production Association SEVMASH NJSC
INN 2902059091 Arkhangelsk region
Building of ships, vessels and floating structures
up74,3 up88,8 down5,7 up8,9 up0,90 up0,88 170 Superior
Total for TOP-10 companies up631,5 up703,7 up34,3 up47,4    
Average value for TOP-10 up63,3 up70,4 up3,4 up4,7 up0,69 up0,67
Industry average value up1,41 down1,37 up0,04 down0,00 down0,75 down0,78

Up — improvement compared to prior period, Up — decline compared to prior period.

Average value of debt to assets ratio of TOP-10 companies is above the recommended value, lower than the average industry value and within the range of practical values. In 2017 six of TOP-10 companies showed improvement of the indicator compared to prior period.

Picture 1. Debt to assets ratio and revenue of the largest Russian transport facilities and equipment manufacturers (TOP-10) Picture 1. Debt to assets ratio and revenue of the largest Russian transport facilities and equipment manufacturers (TOP-10)

During the decade, average industry values of debt to assets ratio tend to improve (Picture 2).

Picture 2. Change of industry average values of debt to assets ratio of Russian transport facilities and equipment manufacturers in 2008 – 2017 Picture 2. Change of industry average values of debt to assets ratio of Russian transport facilities and equipment manufacturers in 2008 – 2017