Solvency ratio of the largest Russian fishery enterprises
Information agency Credinform prepared a ranking of the major companies in the RF engaged in fishery.
Companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2014). The enterprises were ranked by decrease in solvency ratio (see table 1).
Solvency ratio (x) is equity capital to total assets. It shows the company's dependence on external loans. Recommended value: > 0.5.
The value below the minimum limit means high dependence on external sources of funds that could lead to a liquidity crisis and the precarious financial situation of the company in case of the worsening market conditions.
For the most complete and objective view of the financial condition of the enterprise it is necessary to pay attention not only to the average rates in the industry, but also to the presented set of financial indicators and ratios of the company.
|№||Name||Region||Revenue 2014 th RUB||Revenue2014 to 2013, %%||Solvency ratio (х)||Solvency index Globas-i®|
|1||JSC Atlantrybflot Scientific-Industrial Association
|Kaliningrad region||1 328 400||131||0,85||178 The highest|
|2||NORTH WEST CRAB-CATCHING COMPANY LTD.
|Murmansk region||1 268 763||168||0,50||173 The highest|
|3||OPEN JOINT STOCK COMPANY ARKHANGELSK TRAWFLEET
|Arkhangelsk region||3 723 113||154||0,36||214 High|
|4||CJSC FISHING COLLECTIVE FARM VOSTOK-1
|Primorye territory||1 370 474||122||0,19||312 Satisfactory|
|5||Joint Stock Company Fishing Fleet FOR
|Kaliningrad region||1 397 778||112||0,10||280 High|
|6||ООО MARITIME STAR
|Kaliningrad region||2 386 716||135||0,08||230 High|
|7||PACIFIC FISHERY COMPANY CO., LTD
|Magadan region||1 348 839||124||-0,51||250 High|
|8||JOINT STOCK COMPANY INTRAROS
|Primorye territory||2 371 015||121||-0,53||261 High|
|9||LIMITED LIABILITY COMPANY ROLIZ
|Primorye territory||2 866 516||133||-0,61||296 High|
|10||JSC Pacific department of fish survey and research fleet
|Primorye territory||3 140 046||108||-0,79||283 High|
Solvency ratio of the largest Russian fishery enterprises (Top-10) varies from 0,85 to -0,79. The industry average value in 2014 was 0,26.
Solvency ratios of only two enterprises from the Top-10 meet the recommended norms: JSC Atlantrybflot Scientific-Industrial Association (x0,85) and NORTH WEST CRAB-CATCHING COMPANY LTD. (x0,50). These companies got the highest solvency index Globas-i. This indicates high ability to fulfil the debt liabilities.
Other Top-10 companies are highly depend on raise funds and have solvency index less than 0,5. Their capital does not cover the amount of liabilities. In case of lump-sum on credits the enterprises may have difficulties with repayment. Therefore, the companies in this sector need to proportion intentions to rapidly increase market presence under the reduction of competition of foreign companies to the ability to deal with high debt load.
According to the latest published annual financial statements for 2014, total annual revenue of the Top-10 companies amounted to 21,2 bln RUB, which is by 29% higher than the same companies’ figures in 2013. At the same time the growth rate of revenue of the Top-200 companies engaged in fishing industry over the same period was only 17%. This may indicates the concentration of the fish production in large companies and reduction in the number of small companies. For example, 8% of companies from the same Top-200 enterprises are at varying stages of reorganization or liquidation.
Rosstat data (Picture 2) show the reverse trend of reduction in physical volume of fish production in 2014 – 2015. Thus, the decrease in 2014 relative to 2013 was almost 20% and in 2015 to 2014 - almost 15%.
Picture 2. Production of live fish, fresh or chilled fish, frozen, chilled or fresh fillets in 2010 - 2015, tons (Rosstat data)