Solvency ratio of the largest Russian private educational organizations

ranking 14/09/2017

Information agency Credinform has prepared a ranking of the largest Russian private educational organizations. The enterprises with the highest volume of annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2015 and 2014). Then they have been ranked by solvency ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Solvency ratio (x) is a ratio of equity to total assets, and it shows the dependence of the company on external loans. Its recommended value: >0.5. A value less than a minimum one is indicative of a dependence on external sources of funds, which may lead to a liquidity crisis, unstable financial position of an organization in case of market degradation.

A calculation of practical values of financial ratios, which 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. The practical value of solvency ratio for private educational organizations in 2015 amounted from 0 to 1. The whole set of financial indicators and ratios of a company is to be considered to get the fullest and fairest opinion about the company’s financial standing.

Table 1. Net profit, revenue, solvency ratio (Sr), solvency index Globas of the largest Russian private educational organizations (TOP-10)
Name, INN, region Net profit, mln RUB Revenue, mln RUB Sr, х >0,5 Solvency index Globas
2014 2015 2016 2014 2015 2016
1 2 3 4 5 6 7 8 9
The Academy of Global Astrology and Metainformation, Non-state Private Educational Institution
INN 7725084339 Moscow
161,92 25,38 н/д 1 174,00 1 578,50 н/д 1,00 231 High
The Russian University of Cooperation, Autonomous Non-profit Educational Organization for Higher Education of Centrosoyuz of the Russian Federation
INN 5029088494 Moscow region
234,84 143,71 176,34 1 522,38 1 592,08 1 630,87 0,75 209 High
British International School, Non-commercial Private Institution of General Education
INN 7713004522 Moscow
93,03 106,85 -36,93 1 302,79 1 409,72 1 402,52 0,75 229 High
The Modern Academy for the Humanities, Private Higher Educational Institution
INN 7701023168 Moscow
83,67 19,85 -399,43 2 044,56 1 518,60 787,69 0,63 292 High
The Moscow University for Industry and Finance Synergy, Non-state Private Higher Educational Institution
INN 7729152149 Moscow
62,94 90,84 52,21 1 378,55 1 517,86 1 898,74 0,36 208 High
The Corporate University of Sberbank, Autonomous Non-Commercial Organization for Continuing Professional Education
INN 7736128605 Moscow
0,94 6,47 26,66 1 627,23 2 639,18 3 310,22 0,31 240 High
The Moscow University of Finance and Law (MFYUA), Certified Private Higher Educational Institution
INN 7725082902 Moscow
41,79 41,44 57,03 1 015,72 1 140,78 1 142,78 0,14 226 High
The Moscow School of Management SKOLKOVO, Non-state Educational Institution for Continuing Professional Education
INN 5032180980 Moscow region
148,82 193,22 -30,64 970,30 1 245,85 1 833,55 0,04 278 High
Education of Children of Pre-school, Elementary School and Intermediate School Ages Nasledie (Heritage), Autonomous Non-commercial Organization for General Education
INN 5024092264 Moscow region
-8 220,70 -7 465,57 n/d 33 858,00 34 688,00 n/d -0,31 322 Satisfactory
Educational Center EF English First CIS, Private Institution, Organization of Additional Education
INN 7707082829 Moscow
-641,88 -423,73 -181,10 1 453,67 1 437,37 1 309,03 -3,44 334 Satisfactory
Total for TOP-10 companies -8 034,63 -7 475,24 n/d 46 347,19 48 767,93 n/d    
Average value for TOP-10 companies -803,46 -747,52 n/d 4 634,72 4 876,79 n/d 0,02  
Industry average value -0,20 -0,04 n/d 8,66 9,35 n/d 0,53  

*Data for 2016 is given for reference.

The average value of 2015 solvency ratio in TOP-10 companies is higher than the recommended value and lower than the practical value. Four companies of TOP-10 have an index value that is higher than the recommended one, and four companies have index value within the recommended value (green and yellow highlight respectively in column 8 of Table 1 and Picture 1). Two companies have a negative value (red highlight in column 8 of Table 1 and Picture 1). Seven of TOP-10 companies have a decrease in revenue or net profit as compared to the prior period, or have loss in 2015 (red highlight in columns 3 and 6 of Table 1).

Picture 1. Solvency ratio and revenue of the largest Russian private educational organizations (TOP-10) Picture 1. Solvency ratio and revenue of the largest Russian private educational organizations (TOP-10)

Industry average values of solvency ratio in 2011-2015 are higher in general than in 2006-2008. The value of the ratio decreased in 2011 after a substantial growth in 2010 (Picture 2).

Picture 2. Change of industry average values of solvency ratio of Russian private educational organizations in 2006-2015. Picture 2. Change of industry average values of solvency ratio of Russian private educational organizations in 2006-2015.

Eight of TOP-10 companies have got a high solvency index Globas, that demonstrates their ability to pay their debts in time and fully.

Education of Children of Pre-school, Elementary School and Intermediate School Ages Nasledie (Heritage), Autonomous Non-commercial Organization for General Education has got a satisfactory solvency index Globas, due to information concerning the organization being a defendant in debt collection arbitration proceedings, and loss within its balance sheet structure. Index development trends are stable.

Educational Center EF English First CIS, Private Institution, Organization of Additional Education has also got a satisfactory solvency index Globas, due to information concerning the organization being a defendant in debt collection arbitration proceedings, untimely fulfillment of its obligations, and loss within its balance sheet structure. Index development trends are stable.