Return on investment of the top Russian metal companies

ranking 12/09/2018

Information agency Credinform has prepared a ranking of the largest Russian metal companies. The companies with the largest annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 - 2017). Then they have been ranked by return on investment ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Return on investment ratio (%) is a ratio of net profit (loss) to total net assets. The ratio demonstrates the rate of return from each ruble raised from investment, that is the amount of monetary units needed for the company to raise one monetary unit of net profit. This ratio helps to evaluate the advisability of raising debt funds at a certain interest.

The whole set of indicators and financial ratios is to be considered in order to get a full and comprehensive insight into a company’s financial standing.

Таблица 1. Net profit, revenue, return on investment ratio, solvency index Globas of the largest Russian metal companies (TOP-10)
Name, INN,
region, key activity
Sales revenue,
billion RUB
Net profit (loss), billion RUB Return on investment, % Solvency index Globas
2016 2017 2016 2017 2016 2017
1 2 3 4 5 6 7 8
SEVERSTAL PJSC
INN 3528000597 Vologda region Manufacture of crude iron, ferroalloy, steel
up305.3 up359.5 up84.7 up130.2 up58.22 up70.95 168 Superior
Mining and Metallurgical Company NORILSK NICKEL PJSC
INN 8401005730 Krasnoyarsk territory Manufacture of other non-ferrous metals
up422.8 up455.9 down122.8 up130.0 down54.59 down52.23 201 Strong
NOVOLIPETSK STEEL PJSC
INN 4823006703 Lipetsk region Manufacture of cold-rolled steel
up335.2 up411.8 down36.4 up109.5 down11.56 up32.17 136 Superior
MAGNITOGORSK IRON & STEEL WORKS PJSC
INN 7414003633 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel
up339.1 up392.8 up68.0 down67.3 up33.8 down28.94 159 Superior
EVRAZ NIZHNY TAGIL METALLURGICAL PLANT NJSC
INN 6623000680 Sverdlovsk region область Manufacture of crude iron, ferroalloy, steel
up111.9 up144.7 up14.3 up55.9 up8.14 up27.88 138 Superior
VYKSA STEEL WORKS NJSC
INN 5247004695 Nizhny Novgorod region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
down115.0 up147.1 up24.8 down21.0 up33.25 down22.07 174 Superior
RUSAL BRATSK ALUMINIUM SMELTER PJSC
INN 3803100054 Irkutsk region Production of aluminium
up82.0 up94.0 up3.7 down2.8 up22.55 down18.22 213 Strong
CHELYABINSK METALLURGICAL PLANT PJSC
INN 7450001007 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel
up107.1 up118.6 up15.0 down5.4 up38.7 down12.21 350 Adequate
EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT NJSC
INN 4218000951 Kemerovo region Manufacture of sectional hot-rolled steel and wire rods
up148.1 up181.4 down8.9 down6.6 down9.94 down7.65 196 Superior
Chelyabinsk Pipe Plant PJSC
INN 7449006730 Chelyabinsk region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
down99.8 up116.1 down4.2 down1.1 down13.72 down3.88 214 Strong
Total for TOP-10 companies up2066.4 up2421.8 up382.6 up529.8    
Average value for TOP-10 companies up206.6 up242.2 up38.3 up53.0 up28.75 up27.62
Industry average value down1.8 n/a up0.2 n/a up25.36 n/a

Up — growth compared to prior period, Up — decline compared to prior period.

Average value of return on investment ratio of TOP-10 companies is higher than the average industry value. In 2017 only three of TOP-10 companies demonstrated growth of the ratio.

Picture 1. Return on investment ratio and revenue of the largest Russian metal companies (TOP-10) Picture 1. Return on investment ratio and revenue of the largest Russian metal companies (TOP-10)

Average industry values of return on investment ratio tend to decrease slightly within the last decade (Picture 2).

Picture 2. Change in average industry values of return on investment ratio of the largest Russian metal companies in 2007 – 2016 Picture 2. Change in average industry values of return on investment ratio of the largest Russian metal companies in 2007 – 2016