Activity trends among the companies in Samara

trends 20/10/2021

Among the largest companies in Samara in 2016 – 2020 prevail positive activity trends. The most important are decline in net loss and decrease in share of companies with insufficient property, high values of return on investment ratio. Among negative trends there is decline in companies’ average net profit.

For the activity trends analysis among the largest companies in Samara information agency Credinform selected the largest companies of the city (TOP 1000) with the highest annual revenue according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2016 – 2020). The selection and analysis of companies were based on the data of the Information and Analytical system Globas.

Net assets are total assets less total liabilities. This indicator reflects the real value of the property of an enterprise. When the company’s debt exceeds the value of its property, the indicator is considered negative (insufficiency of property).

The largest company in term of net assets is LIMITED LIABILITY COMPANY RUSSIAN INNOVATION FUEL AND ENERGY COMPANY, INN 6317130144, extraction of petroleum. In 2020 net assets value of the company exceeded 338 billion RUB.

The lowest net assets value among TOP 1000 belonged to JOINT STOCK COMPANY SAMARA BEARING PLANT, INN 6318100431, manufacture of ball and rolling bearings, it was declared as insolvent (bankrupt) and bankruptcy proceedings were opened 24.04.2018. Insufficient property figured out negative value – 2.3 billion RUB.

Covering the five-year period, the average net assets values of TOP 100 have a trend to increase with the decreasing growth rate (Picture 1).

Picture 1. Change in average net assets values in 2016 – 2020 Picture 1. Change in average net assets values in 2016 – 2020

Over the past five years, the share of companies with insufficient property had a positive trend to decrease (Picture 2).

Picture 2. Shares of TOP 1000 companies with negative net assets value in 2016-2020 Picture 2. Shares of TOP 1000 companies with negative net assets value in 2016-2020

Sales revenue
In 2020, the revenue volume of the ten largest companies was about 47% of total TOP 1000 revenue (Picture 3). This is indicative of a relatively high level of capital concentration among companies in Samara.

Picture 3. The share of TOP 10 companies in total 2020 revenue of TOP 1000 Picture 3. The share of TOP 10 companies in total 2020 revenue of TOP 1000

In general, there is a trend to increase in revenue with the decreasing growth rate (Picture 4).

Picture 4. Change in average revenue in 2016 – 2020 Picture 4. Change in average revenue in 2016 – 2020

Profit and loss
In 2020, the largest organization in term of profit was JOINT STOCK COMPANY SAMARANEFTEGAS, INN 6315229162, extraction of petroleum. The company’s profit almost exceeded 34 billion RUB. Covering the five-year period, there is a trend to decrease in average net profit and growth rate (Picture 5).

Picture 5. Change in average profit (loss) values of TOP 1000 in 2016 – 2020 Picture 5. Change in average profit (loss) values of TOP 1000 in 2016 – 2020

For the five-year period, the average profit of TOP 1000 have the decreasing trend with the increasing net loss (Picture 6).

Picture 6. Change in average net profit and net loss of ТОP 1000 in 2016 - 2020 Picture 6. Change in average net profit and net loss of ТОP 1000 in 2016 - 2020

Key financial ratios
Covering the five-year period, the average values of the current liquidity ratio were above the recommended one - from 1,0 to 2,0 with a trend to increase (Picture 7).

Current liquidity ratio (current assets to short-term liabilities) shows the sufficiency of company’s assets to repay on short-term liabilities.

Picture 7. Change in industry average values of current liquidity ratio of TOP 1000 in 2016 – 2020 Picture 7. Change in industry average values of current liquidity ratio of TOP 1000 in 2016 – 2020

Covering the five-year period, the average values of ROI ratio had a trend to increase (Picture 8).

ROI ratio is calculated as net profit to sum of shareholders equity and long-term liabilities, and shows the return of equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in industry average values of ROI ratio of TOP 1000 in 2016 - 2020 Picture 8. Change in industry average values of ROI ratio of TOP 1000 in 2016 - 2020

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

Covering the five-year period, business activity ratio demonstrated the decreasing trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio of TOP 1000 in 2016 – 2020 Picture 9. Change in average values of assets turnover ratio of TOP 1000 in 2016 – 2020

Small business
84% of companies of TOP 1000 are registered in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. In 2020, their share in total revenue of TOP 1000 is 24.4%, higher than the average country values in 2018-2019 (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in TOP 1000 Picture 10. Shares of small and medium-sized enterprises in TOP 1000

Financial position score
Assessment of the financial position of TOP 1000 companies shows that the financial position of the majority of them is above average (Picture 11).

Picture 11. Distribution of TOP 1000 companies by financial position score Picture 11. Distribution of TOP 1000 companies by financial position score

Solvency index Globas
Most of TOP 1000 companies got Superior / High indexes Globas. This fact shows their ability to meet their obligations on time and in full (Picture 12).

Picture 12. Distribution of TOP 1000 companies by solvency index Globas Picture 12. Distribution of TOP 1000 companies by solvency index Globas

Conclusion
Complex assessment of activity of the largest companies in Samara, taking into account the main indexes, financial ratios and indicators, demonstrates the prevalence of positive trends in their activities in 2016 - 2020 (Table 1).

Table 1. Positive and negative trends, evaluation factors
Trends and evaluation factors Relative share of factors, %
Dynamics of the average net assets value up10
Rate of growth (decrease) in the average size of net assets down-10
Increase (decrease) in the share of enterprises with negative values of net assets up10
Level of competition / monopolization down-10
Dynamics of the average revenue up10
Rate of growth (decrease) in the average size of revenue down-10
Dynamics of the average profit (loss) down-10
Rate of growth (decrease) in the average profit (loss) down-10
Growth / decline in average values of companies’ net profit down-10
Growth / decline in average values of companies’ net loss up10
Increase / decrease in average values of total liquidity ratio up5
Increase / decrease in average values of return on investment ratio up10
Increase / decrease in average values of asset turnover ratio, times down-10
Share of small and medium-sized businesses in terms of revenue being more than 20% up10
Financial position (the largest share) up10
Solvency index Globas (the largest share) up10
Average value of relative share of factors up0,9

вверх positive trend (factor), вниз negative trend (factor)