Absolute liquidity ratio of the largest Russian manufacturers and suppliers of equipment for the food industry

ranking 05/07/2018

Information agency Credinform represents the ranking of the largest Russian manufacturers and suppliers of equipment for the food industry. The enterprises 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 2014-2016). Then they were ranked by the absolute liquidity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Absolute liquidity ratio (х) is calculated as the ratio of the amount of cash, being at the disposal of a company, to short-term liabilities. It determines the share of short-term liabilities, which an enterprise can pay off in the near future. The recommended value is from 0,1 up to 0,15. The higher is the indicator, the better is the solvency of an enterprise.

However, a too high value of the ratio may indicate an irrational capital structure and unused assets in the form of cash and funds on accounts that, over time and as a result of inflation, depreciate and lose their initial liquidity.

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 manufacturers and suppliers of equipment for the food industry the industry average practical values of the absolute liquidity ratio made in 2016 from 0,01 up to 0,34 and 0,37, respectively.

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, absolute liquidity ratio, solvency index Globas of the largest Russian manufacturers and suppliers of equipment for the food industry (TOP-10)
Name, INN, region, type of activity Revenue, mln RUB Net profit, mln RUB Absolute liquidity ratio (x) Solvency index Globas
2015 2016 2015 2016 2015 2016
MELINVEST NJSC
INN 5257003490
Nizhny Novgorod region
Manufacture of machinery and equipment for production of food, beverages and tobacco products
up 1 401 down 1 392 up 169 up 137 up 1,24 up 2,24 180 High
MASHINOSTROITELNAYA KOMPANIYA TEKHNEKS LLC
INN 6678049565
Sverdlovsk region
Manufacture of machinery and equipment for production of food, beverages and tobacco products
up 1 156 up 1 787 up 68 up 156 up 0,78 down 0,66 169 Superior
KHS RUS LLC
INN 7706502693
Moscow
Wholesale of machinery and equipment for production of food, beverages and tobacco products
up 1 114 up 1 230 up 95 down 91 up 0,28 up 0,44 211 Strong
ZAVOD BRANDFORD LLC
INN 4401143067
Kostroma region
Manufacture of machinery and equipment for production of food, beverages and tobacco products
up 2 375 up 3 931 up 348 up 372 up 0,05 up 0,42 198 High
ALFA LAVAL POTOK NJSC
INN 5018035564
Moscow region
Manufacture of machinery and equipment for production of food, beverages and tobacco products
up 6 064 down 4 232 up 174 down 55 down 0,20 up 0,21 245 Strong
AIRCOOL CO LLC
INN 7825124257
St. Petersburg
Wholesale of machinery and equipment for production of food, beverages and tobacco products
up 1 498 down 1 293 up 75 down 50 up 0,22 down 0,18 230 Strong
TEKNOPAK LLC
INN 7701372708
Moscow
Wholesale of machinery and equipment for production of food, beverages and tobacco products
down 50 up 1 338 up 2 up 13 up 0,48 down 0,08 258 Medium
ANTES LLC
INN 5018023992
Moscow region
Wholesale of machinery and equipment for production of food, beverages and tobacco products
up 1 349 down 1 318 up 70 up 135 up 0,29 down 0,07 191 High
BRANDFORD LLC
INN 4401045285
Kostroma region
Manufacture of machinery and equipment for production of food, beverages and tobacco products
up 1 389 up 2 054 up 2 up 118 down 0,00 up 0,05 229 Strong
NKH-LOGISTIK LLC
INN 5257154509
Nizhny Novgorod region
Wholesale of machinery and equipment for production of food, beverages and tobacco products
up 48 up 1 247 up 2 up 31 0,00 0,00 260 Medium
Total by TOP-10 companies up 16 444 up 19 821 up 1 005 up 1 159      
Average value by TOP-10 companies up 1 644 up 1 982 up 100 up 116 up 0,36 up 0,44  
Industry average value in the manufacture of machinery and equipment for production of food up 67 up 68 up 3 down 3 down 0,14 down 0,13  
Industry average value in the wholesale of machinery and equipment for production of food down 48 up 51 up 1 up 3 up 0,13 down 0,12  

up — growth of the indicator to the previous period, up — decline of the indicator to the previous period.

The average value of the absolute liquidity ratio of TOP-10 companies in 2016 is higher than the recommended and practical intervals and above the industry average indicators.

Picture 1. Absolute liquidity ratio and revenue of the largest Russian manufacturers and suppliers of equipment for the food industry (TOP-10) Picture 1. Absolute liquidity ratio and revenue of the largest Russian manufacturers and suppliers of equipment for the food industry (TOP-10)

Over the course of 10 years, the industry average indicators of the absolute liquidity ratio in the manufacture of machinery and equipment for food production tend to increase, and in the wholesale of machinery and equipment for food production — to decrease (Picture 2).

Picture 2. Change in the industry average values of the absolute liquidity ratio of the largest Russian manufacturers and suppliers of equipment for the food industry in 2007 — 2016 Picture 2. Change in the industry average values of the absolute liquidity ratio of the largest Russian manufacturers and suppliers of equipment for the food industry in 2007 — 2016