Current assets to equity ratio of the largest Russian automotive companies

ranking 03/04/2019

Information agency Credinform represents the ranking of the largest Russian automotive companies. The automobile manufacturers with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2015 - 2017). Then they were ranked by current assets to equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Current assets to equity ratio (х) characterizes company’s ability to maintain the level of own working capital and to finance current assets with own sources. The ratio is calculated as the relation of own current assets of a company to total value of equity. The recommended value is in the range from 0,2 up to 0,5.

Decrease in the ratio indicates a possible slowdown in payment of receivables or tightening of conditions for granting trade credit from suppliers and contractors. The increase points to the growing opportunity to pay off current liabilities.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For automobile manufacturers the industry average practical value of the current assets to equity ratio made from 0,41 up to 1,00 in 2017.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, current assets to equity ratio, solvency index Globas of the largest Russian automotive companies (TOP-10)
Name, INN, region, type of activity Revenue, billion RUB Net profit (loss), billion RUB Current assets to equity ratio (x), from 0,2 up to 0,5 Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
AVTOVAZ PJSC
INN 6320002223 Samara region
Car production
up190,0 up233,8 up-35,5 up-12,4 down3,02 down2,43 267 Medium
FORD SOLLERS HOLDING LLC
INN 1646021952 Republic of Tatarstan
Manufacture of motor vehicles
up53,9 up67,1 down-23,8 up-13,6 up2,74 down1,98 311 Adequate
ELLADA INTERTREID LLC
INN 3906072056 Kaliningrad region
Manufacture of motor vehicles
up83,2 up135,7 up3,4 up7,8 down-0,15 up0,82 207 Strong
HYUNDAI MOTOR MANUFACTURING RUS LLC
INN 7801463902 St. Petersburg
Manufacture of motor vehicles
up116,9 up151,2 up5,9 up6,7 down-0,04 up0,12 209 Strong
RENAULT RUSSIA NJSC
INN 7709259743 Moscow
Manufacture of motor vehicles
up94,6 up126,2 down-2,6 up3,1 down-0,38 up-0,07 219 Strong
KAMAZ PJSC
INN 1650032058 Republic of Tatarstan
Truck production
up120,8 up145,2 up1,2 up3,0 down-0,45 down-0,59 192 High
NISSAN MANUFACTURING RUS LLC
INN 7842337791 St. Petersburg
Manufacture of motor vehicles
down96,7 up105,8 down-13,8 up-7,6 up-0,43 down-1,14 284 Medium
VOLKSWAGEN GROUP RUS LLC
INN 5042059767 Kaluga region
Manufacture of motor vehicles
up191,1 up237,6 up-5,6 up5,3 down-2,40 up-1,36 237 Medium
LADA IZHEVSKII AVTOMOBILNYI ZAVOD LLC
INN 1834051678 Udmurtian Republic
Manufacture of motor vehicles
up45,2 up52,3 down0,0 down-0,9 up-3,71 down-5,83 324 Adequate
AVTOMOBILNYI ZAVOD GAZ LLC
INN 5250018433 Nizhny Novgorod region
Manufacture of internal combustion engines of motor vehicles
up75,2 up85,2 up0,5 down0,1 up-4,44 down-14,14 219 Medium
Total by TOP-10 companies up1067,5 up1340,2 up-70,2 up-8,4    
Avearge value by TOP-10 companies up106,7 up134,0 up-7,0 up-0,8 up-0,63 down-1,78
Industry average value down0,8 up1,0 up-0,02 down-0,04 up-1,62 down-3,18

Up — improvement of the indicator to the previous period, DOWN — decline in the indicator to the previous period.

The average value of the current assets to equity ratio of TOP-10 enterprises is above industry average, but below recommended and practical values. Four companies from the TOP-10 list improved the indicators in 2017 compared to the previous period.

Picture 1. Current assets to equity ratio and revenue of the largest Russian automotive companies (TOP-10) Picture 1. Current assets to equity ratio and revenue of the largest Russian automotive companies (TOP-10)

The industry average indicators of the current assets to equity ratio have a downward trend over the course of 10 years (Picture 2).

Picture 2. Change in the industry average values of the current assets to equity ratio of Russian automotive companies in 2008 – 2017 Picture 2. Change in the industry average values of the current assets to equity ratio of Russian automotive companies in 2008 – 2017