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.
| 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 |
 305.3 |
359.5 |
84.7 |
130.2 |
58.22 |
70.95 |
168 Superior |
| Mining and Metallurgical Company NORILSK NICKEL PJSC INN 8401005730 Krasnoyarsk territory Manufacture of other non-ferrous metals |
422.8 |
455.9 |
 122.8 |
130.0 |
54.59 |
52.23 |
201 Strong |
| NOVOLIPETSK STEEL PJSC INN 4823006703 Lipetsk region Manufacture of cold-rolled steel |
335.2 |
411.8 |
36.4 |
109.5 |
11.56 |
32.17 |
136 Superior |
| MAGNITOGORSK IRON & STEEL WORKS PJSC INN 7414003633 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel |
339.1 |
392.8 |
68.0 |
67.3 |
33.8 |
28.94 |
159 Superior |
| EVRAZ NIZHNY TAGIL METALLURGICAL PLANT NJSC INN 6623000680 Sverdlovsk region область Manufacture of crude iron, ferroalloy, steel |
111.9 |
144.7 |
14.3 |
55.9 |
8.14 |
27.88 |
138 Superior |
| VYKSA STEEL WORKS NJSC INN 5247004695 Nizhny Novgorod region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel |
115.0 |
147.1 |
24.8 |
21.0 |
33.25 |
22.07 |
174 Superior |
| RUSAL BRATSK ALUMINIUM SMELTER PJSC INN 3803100054 Irkutsk region Production of aluminium |
82.0 |
94.0 |
3.7 |
2.8 |
22.55 |
18.22 |
213 Strong |
| CHELYABINSK METALLURGICAL PLANT PJSC INN 7450001007 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel |
107.1 |
118.6 |
15.0 |
5.4 |
38.7 |
12.21 |
350 Adequate |
| EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT NJSC INN 4218000951 Kemerovo region Manufacture of sectional hot-rolled steel and wire rods |
148.1 |
181.4 |
8.9 |
6.6 |
9.94 |
7.65 |
196 Superior |
| Chelyabinsk Pipe Plant PJSC INN 7449006730 Chelyabinsk region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel |
99.8 |
116.1 |
4.2 |
1.1 |
13.72 |
3.88 |
214 Strong |
| Total for TOP-10 companies | 2066.4 |
2421.8 |
382.6 |
529.8 |
|||
| Average value for TOP-10 companies | 206.6 |
242.2 |
38.3 |
53.0 |
28.75 |
27.62 |
|
| Industry average value | 1.8 |
n/a | 0.2 |
n/a | 25.36 |
n/a | |
— growth compared to prior period, — 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)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