Return on investment of the largest Russian manufacturers of electrical equipment

ranking 03/10/2017

Information agency Credinform represents the ranking of the largest Russian manufacturers of electrical equipment. 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 and 2015). Then they were ranked by the return on investments (Table 1). The analysis was made based on data of the Information and analytical system Globas.

Return on investment (ROI ratio, %) is calculated as a ratio of net profit (loss) to the value of net assets. The indicator characterizes the level of profitability from investments, i.e. the amount of monetary units required by an enterprise for receiving one monetary unit of net profit. With the help of this indicator it is possible to assess the advisability of raising of borrowed funds at a certain percent.

Normative values for profitability indicators are not provided, because they vary, depending on the industry, in which an enterprise operates. The indicators of each particular company should be considered in comparison with industry indicators.

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 company’s indicators and financial ratios.

Table 1. Net profit, revenue, return on investment (ROI ratio,%), solvency index Globas of the largest Russian manufacturers of electrical equipment (TOP-10)
Name, INN, region Net profit, mln RUB. * Revenue, mln RUB * ROI ratio, % Solvency index Globas
2014 2015 2016 2014 2015 2016
1 2 3 4 5 6 7 8 9
BEKO LIMITED LIABILITY COMPANY
INN 7804157910 Vladimir region
944 1 191 1 041 9 344 9 577 10 989 24,68 213 High
KAMSKII KABEL LLC
INN 5904184047 Perm territory
10 465 115 19 325 21 422 23 517 20,14 263 High
NAO ELEKTROKABEL KOLCHUGINSKII ZAVOD
INN 3306007697 Vladimir region
49 526 345 8 473 10 518 11 064 18,96 206 High
LIMITED LIABILITY COMPANY ELKAT
INN 7722018271 Moscow
352 206 135 8 472 8 505 7 628 14,93 226 High
LIMITED LIABILITY COMPANY LG ELECTRONICS RUS
INN 5075018950 Moscow region
2 096 2 471 7 330 97 690 80 695 82 415 13,97 186 The highest
PAO PROIZVODSTVENNOE OByEDINENIE ZAVOD IMENI SERGO
INN 1648032420 Republic of Tatarstan
-44 416 н/д 5 886 9 942 н/д 6,86 173 The highest
NAO INDESIT INTERNATIONAL
INN 4823005682 Lipetsk region
-101 280 963 16 277 16 473 18 737 2,75 223 High
PAO THE INCORPARATED ELECTROTECHNICAL PLANTS
INN 7716523950 Moscow
3 5 -261 9 002 8 917 10 594 0,17 242 High
NAO GRUPPA KOMPANII ELEKTROSHCHIT -TM SAMARA
INN 6313009980 Samara region
-110 -673 -3 037 18 718 15 541 13 807 -6,79 293 High
BSH BYTOWIJE PRIBORY LLC
INN 7819301797 St. Petersburg
-926 -531 426 8 005 10 118 30 964 -42,22 293 High
Total by TOP-10 companies 2 272 4 355   201 193 191 709      
Average value by TOP-10 companies 227 436   20 119 19 171   5,35  
Industry average value 2 16   192 179   6,82  

*)Data for 2016 are provided for reference.

The average indicator of the return on investment of TOP-10 companies is below the industry average. Two firms have a negative value of the indicator. Eight from the TOP-10 companies reduced revenue or net profit in 2015 - 2016 in comparison with the previous period or have losses (are marked with red filling in columns 3, 4, 6 and 7 in Table 1).

Picture 1. Return on investment ratio (ROI ratio,%) and revenue of the largest Russian manufacturers of electrical equipment (TOP-10) Picture 1. Return on investment ratio (ROI ratio,%) and revenue of the largest Russian manufacturers of electrical equipment (TOP-10)

The industry average values of the ROI ratio in the period 2006 - 2015 reflect macroeconomic trends, decreasing during crisis developments (Picture 2).

Picture 2. Change in the average industry values of the return on investment ratio of Russian manufacturers of electrical equipment in 2006 - 2015 Picture 2. Change in the average industry values of the return on investment ratio of Russian manufacturers of electrical equipment in 2006 - 2015

All TOP-10 companies got the highest or high solvency index Globas, that testifies to their ability to repay their debt obligations timely and fully.