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
Name, INN, region	2014	2015	2016	2014	2015	2016	ROI ratio, %	Solvency index Globas
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)

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

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.