Return on sales of the Russian real estate companies
Information agency Credinform prepared a ranking of Russian real estate companies.
The companies with the highest volume of revenue (TOP-10) were selected for the ranking according to the data from the Statistical Register for the latest available accounting period (for the year 2014). Then they were ranked by decrease in return on sales ratio (Table 1).
Return on sales (%) is the share of operating profit in the company's sales volume. Return on sales reflects the efficiency of industrial and commercial activity. The ratio shows how much money remains by an enterprise in the result of the sale of products after covering its costs, loans interest’s expense and payment of taxes.
Return on sales is an indicator of company’s ability to control costs. Differences in sales strategies and product lines involve a wide range of return on sales values. Therefore, at equal values of revenue, operating expenses and pre-tax profit in two different organizations the return on sales can vary greatly under the influence of the volume of interest payments on the net profit.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to values of financial ratios, but also to all combination of financial and non-financial data.
|Name, INN, Region||Net profit for 2014, in mln RUB||Revenue for 2014, in mln RUB||Revenue for 2014, by 2013, %||Return on sales, %||Solvency index Globas-i|
|KASHIRSKY DVOR-SEVERYANIN NJSC
INN 7706199246 Moscow
|-7 232,5||7 022,0||114||68,00||294 High|
INN 5024062326 Moscow region
|798,5||3 702,6||157||36,70||204 High|
|FIRST MORTGAGE COMPANY - REGION NJSC
INN 7729118074 Moscow region
|3 602,6||18 585,1||147||32,19||218 High|
|NDV-NEDVIZHIMOST DLYA VAS LLC
INN 7701288005 Moscow
|14,2||1 208,2||128||16,70||175 The highest|
INN 7703561700 Moscow
|AGENTSTVO INVESTITSII V NEDVIZHIMOST LLC
INN 5902190905 Perm territory
|250,9||4 088,9||153||13,46||199 The highest|
INN 7714611150 Moscow
|117,4||9 296,6||183||3,29||203 High|
|JONES LANG LASALLE LLC
INN 7710257780 Moscow
|283,3||1 203,4||93||1,63||236 High|
INN 7706215018 Moscow
|-688,1||34 831,2||200||0,01||272 High|
|CUSHMAN & WAKEFIELD LLC
INN 7705637585 Moscow
|-118,7||1 218,8||105||-3,01||159 The highest|
The company, leading in the industry in annual revenue for 2014 - ZINZIVER-2000 PJSC, takes the second-to-last place of the ranking. The enterprise showed the best revenue growth rate, and its share in the total revenue of TOP-10 made 42%.
The worst and a negative return on sales ratio in the TOP-10 belongs to CUSHMAN & WAKEFIELD LLC. Such result indicates that the cost of services is higher than the sales profit, the price is not high enough to cover all the costs, and the company's own assets are used inefficiently.
The best indicator was demonstrated by KASHIRSKY DVOR-SEVERYANIN NJSC. However, the same company showed also the largest loss at year-end 2014.
The average rate of return on sales amounted to 18,51% - in the group of TOP-10 companies, 14,69% - in the group of TOP-100 companies, by the industry average value of 6%.
Nine companies from the TOP-10 finished the year 2014 with positive dynamics of revenue. However, six companies have a decrease in net profit compared to the previous period. The same situation with revenue and net profit is observed in the group of TOP- 100 companies.
All TOP-10 companies got the highest and high solvency index Globas-i, that points to their ability to repay their debt obligations timely and fully, which risk of default is minimal.
The total amount of revenue of TOP-10 companies for 2014 amounted to 81,9 bln RUB, that is by 63% more than in 2013. In the group of TOP- 100 companies the revenue growth was 53% for the same period.
In general, the real estate industry shows a positive trend in revenue in recent years. This is evidenced by the information based on the data of the Federal State Statistics Service (Rosstat) (Picture 2).
At the same time, the indebtedness under received credits and loans of real estate agencies, according to the same data of Rosstat, is at a very high level and tends to increase (Picture 3).
The real-estate companies are inclined to the most developed regions and first of all to the major financial center of the country - Moscow. Thus, according to the Information and analytical system Globas-i, 100 the largest companies on revenue for 2014 are registered in 27 regions. Most of them are registered in the following regions (TOP-7 Regions):
|Region||Number of companies|
|Republic of Tatarstan||4|